Lagos, Nigeria – The Centre for Transparency and Defence of Human Rights has demanded for a total scrapping of the proposed 4% Free-on-Board (FOB) charge by the Nigeria Customs Service (NCS), describing it as an unjustifiable financial burden on Nigerians already grappling with economic hardship.
While the government has currently suspended the charge, the group insists that its potential implementation remains a significant threat to the livelihood of millions.
In a statement signed by its Executive Director, Barrister Ifeoluwa Ajay, the organization emphasized that the charge, if imposed, would drastically increase the cost of imported goods, exacerbating inflation and deepening the economic crisis across the country.
Ajay highlighted that Nigeria records an average of ₦72 trillion in yearly import transactions. If the proposed charge were enforced, it would generate an estimated ₦2.8 trillion in additional revenue for the NCS—an agency that already receives trillions of naira from the Federation Account.
“This raises a fundamental question,” the statement read. “Why does an agency with such substantial funding need more revenue at the expense of suffering Nigerians?”
The group further argued that beyond its impact on consumers, the 4% FOB charge would have devastating effects on local manufacturers who rely heavily on imported raw materials. With existing import duties of 5% or higher, the additional charge would significantly raise production costs, making it harder for industries to remain competitive.
“Manufacturers in Nigeria are already grappling with multiple economic challenges, including rising energy costs, foreign exchange volatility, and a harsh business environment,” Ajay noted.
“This additional burden will push many struggling industries to the brink of collapse, stifle investment, force businesses to scale down operations, and worsen the already alarming unemployment rate.”
The group further argued that the proposed charge contradicts the government’s stated commitment to industrial growth and economic recovery. They warned that policies like this would only drive up manufacturing costs and discourage investment.
“If the government is serious about economic recovery, it must not pursue policies that drive up costs for manufacturers and consumers,” Ajay stated.
“This charge is not only anti-people but also anti-business and anti-development. The economy cannot afford such a policy when industries are struggling to stay afloat.”
The statement also highlighted the severe economic hardship that Nigerians are currently facing due to government policies. The cost of essential goods, including food, fuel, and rent, has surged, leaving many citizens barely able to survive.
“Rather than introducing policies that cushion the economic downturn, the government seems intent on piling more financial burdens on the people,” Ajay lamented.
The organization called on the government to focus on alternative ways to improve revenue generation rather than imposing additional charges on imports.
It also recommended that the Nigeria Customs Service should prioritize closing revenue leakages, improving efficiency, and tackling corruption within its operations.
“The trillions already allocated to the NCS should be sufficient for modernization and operational improvements,” the group stated. “The government must recognize that the economic survival of its people is more important than any revenue-generation target.”
The statement concluded with a strong demand for the government to go beyond suspending the policy and instead permanently scrap it.
“The Nigerian people cannot afford it. What they need are policies that reduce the cost of living, promote business growth, and create jobs—not more taxes disguised as modernization fees,” Ajay asserted. “The government must listen to the voice of reason and prioritize the welfare of Nigerians over expanding revenue for an already well-funded agency. Anything less is unacceptable.”