In a strategic effort to strengthen Nigeria’s industrial backbone while ensuring a balanced revenue system, the Nigeria Customs Service (NCS) has reached a landmark accord with the Manufacturers Association of Nigeria (MAN) to implement targeted exemptions from the recently suspended four per cent Free-On-Board (FOB) import levy.
The newly approved exemptions cover manufacturers importing essential raw materials, machinery, and spare parts, as well as importers of airline components, healthcare goods, humanitarian supplies, and government projects backed by Import Duty Exemption Certificates (IDECs). These categories will no longer be subject to the 4% FOB charge.
Announcing the development after a high-level consultative meeting with MAN executives in Lagos, Comptroller-General of Customs, Adewale Adeniyi, explained that the initiative aligns with the directive of the Minister of Finance, Wale Edun, to temporarily suspend the levy. The engagement forms part of the wider stakeholder dialogue mandated under the Nigeria Customs Service Act 2023.
Adeniyi urged manufacturers listed under Chapters 98 and 99 of the Customs Tariff to immediately apply for pre-release of consignments to prevent demurrage accumulation. He also revealed that MAN members whose imports are not yet categorised under these chapters would soon be integrated into the exemption framework. Payments already made by unclassified manufacturers will be credited toward future customs operations upon their onboarding.
The exemptions also extend to humanitarian and medical imports, particularly those linked to the Presidential Initiative for unlocking the healthcare value chain. Adeniyi emphasised that this measure demonstrates the federal government’s determination to protect vital industries from excessive cost burdens while sustaining efficient revenue administration.
In addition to the exemption framework, the NCS is rolling out comprehensive trade facilitation reforms — including the creation of one-stop shop systems to simplify regulatory processes, reduction of unnecessary checkpoints, and deployment of advanced digital solutions to expedite legitimate trade. Plans are underway to introduce real-time clearance systems and automated risk assessment tools aimed at cutting compliance costs for manufacturers.
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To deepen collaboration, the NCS and MAN have agreed to institutionalise periodic consultations on policy issues affecting Nigeria’s manufacturing landscape. This partnership will drive national economic diversification goals such as job creation, export expansion, import substitution, and the growth of industrial clusters under predictable and investor-friendly trade conditions.
The Customs Service further pledged to issue clear operational guidelines for the upcoming Authorised Economic Operator (AEO) programme — an international initiative that recognises compliant traders and secures global supply chains — set to replace the outdated Fast Track System.
A tripartite meeting between the Ministry of Finance, NCS, and MAN is being planned to fast-track the onboarding process of manufacturers under Chapters 98 and 99.
MAN President, Otunba Francis Meshioye, commended the agreement as a bold move to reduce production overheads and boost industrial competitiveness. He, however, pointed out lingering challenges such as excessive checkpoints, frequent clearance system alerts, and concerns with the B’Odogwu platform, calling for continuous engagement to resolve them.
Meshioye lauded Adeniyi’s leadership for bringing professionalism and innovation to the Customs Service, expressing confidence that the renewed partnership will enhance policy coherence, improve the business environment, and accelerate Nigeria’s industrial advancement.
For small and medium-scale manufacturers, the exemptions represent a timely relief — lowering import expenses, improving access to essential inputs, and enhancing competitiveness. The move is expected to provide a critical lifeline for enterprises grappling with escalating production costs and an increasingly demanding economic landscape.
