The former President of the Senate, Dr. Abubakar Bukola Saraki, has criticized the Federal Government over its newly introduced 4% customs administration charge on the Free On-Board (FOB) value of imports, warning that it will worsen economic hardship for Nigerians.
In a statement posted on his official X handle on Sunday, Saraki expressed strong opposition to the policy, highlighting the financial burden it would place on businesses and households.
“With our annual imports estimated at N71 trillion, the new 4% customs administration charge on Free On-Board (FOB) value will come to N2.84 trillion. Does this mean that the Customs Service requires an additional N2.84 trillion annually to do its job? Don’t forget they already have a budget and get an incentive percentage on total customs duties collected,” Saraki stated.
He further criticized the policy, pointing out that the Nigeria Customs Service already receives substantial funding and questioning why such a huge additional revenue is necessary for its operations.
Last week, the Nigeria Customs Service (NCS) began enforcing a 4% charge on the Free On-Board (FOB) value of imports in accordance with the provisions of the Nigeria Customs Service Act (NCSA) 2023.
New policy may worsen hardship for Nigerians
Saraki warned that the new policy would significantly increase import costs, which importers would ultimately pass on to consumers, further straining household budgets amid economic difficulties.
“This new fee of 4% is not even restricted to luxury goods but across all imports, so even for industries that import their raw materials whose duties are only 5%, the customs agency will now charge importers an extra 80% of the duty amount as administrative fees! How can this make sense or support the government’s policy of promoting the ease of doing business?” the former Governor of Kwara state questioned.
The former Senate President emphasized that the policy was ill-timed, especially considering the economic challenges many Nigerians are currently facing. He argued that rather than introducing additional financial burdens, the government should focus on policies that promote economic growth and ease of doing business.
Call for Urgent Reversal
Saraki urged the government to immediately put the policy on hold, stressing that it was counterproductive to the administration’s economic objectives.
“The government must urgently reconsider this policy and put it on hold immediately. Especially not now with what Nigerians are going through,” he said.
Key Highlights
- New Charge: FG introduces a 4% administrative charge on FOB import value.
- Economic Impact: Saraki warns it will increase costs for businesses and consumers.
- Revenue Concerns: Questions why Customs needs an additional N2.84 trillion annually.
- Call for Reversal: Urges FG to suspend the policy immediately.
