The Nigeria Employers’ Consultative Association (NECA) has expressed deep concern over the recent introduction of four per cent administration charge on Free on Board (FOB) value by the Nigeria Customs Service (NCS) as contained in the Nigeria Customs Service Act, 2023.
NECA said while revenue generation remains a priority for the government, imposing this levy amid prevailing economic hardships is ill-timed and detrimental to businesses and Nigerians.
NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, stated: “the Nigerian business environment is already burdened with multiple taxes, unpredictable policies, and economic challenges. With rising unsold inventories and growing unemployment, policies should support businesses and not further strangulate them.
“This additional financial import-dependent business will escalate production costs, fuel inflation, and threaten jobs. Ultimately, consumers will suffer from higher prices, worsening an already challenging economic climate.”
Mr. Oyerinde further criticised the NCS for prioritising revenue generation over its core mandate of trade facilitation and economic development, insisting that “This approach is counterproductive and directly contradicts the government’s Ease of Doing Business agenda.”
The NECA DG added that “with a revenue target of N10 trillion set for the NCS in the 2025 Budget by the National Assembly, this levy appears to be a desperate attempt to meet revenue projections at the expense of businesses and ordinary Nigerians.
“While government may achieve its revenue goals, the unintended consequences will be severe—higher costs of goods, business closures, rising unemployment, and worsening economic hardship for millions of citizens,” he stated.
