NECA Rejects New 4% Customs Levy, Warns of Economic Hardship
The Nigeria Employers’ Consultative Association (NECA) has strongly opposed the newly introduced 4% Customs Administration Charge on the Free on Board (FOB) value by the Nigeria Customs Service (NCS), calling it an ill-timed policy that will worsen economic hardships.
NECA’s Director-General, Adewale-Smatt Oyerinde, warned that the levy would escalate production costs, and fuel inflation, and lead to job losses, further burdening businesses already struggling with multiple taxes and economic instability.
He criticized the NCS for prioritizing revenue generation over trade facilitation, arguing that the move contradicts the government’s Ease of Doing Business agenda and undermines ongoing tax reform efforts. With Nigeria’s annual imports valued at N71 trillion, the levy could add N2.84 trillion in extra costs, severely impacting industries dependent on imported raw materials and eroding competitiveness. NECA is calling for an immediate reversal of the policy, urging the government to engage stakeholders in finding more sustainable ways to boost revenue without stifling economic growth.
