The Director-General of Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, don beg Nigeria Customs Service make dem suspend the 4% Free On Board (FOB) levy, wey Customs wan start to collect from importers.
Ajayi-Kadiri tok this one for interview with Arise News, as im explain say the new levy go only make things hard for manufacturers, increase inflation, and reduce Nigeria products competitiveness for West Africa market.
According to am, manufacturers already dey struggle with high cost of production, and Lagos port congestion don add another wahala join. He even lament say the cost to carry one 40-foot container from Singapore to Nigeria cheap pass to transport am from Apapa port reach Agbara.
“Customs no suppose increase levy at this time. When dem dey collect the old 1% CISS plus 7% cost of collection, dem still pass their revenue target for 2024. So, wetin be the need to add extra 4% FOB wey go only suffocate manufacturers?” Ajayi-Kadiri tok.
The MAN DG commend Customs for exceeding their revenue target last year, but warn say introducing this new levy go scatter the small stability wey government don achieve for economy.
He also talk say other West African countries like Ghana, Senegal and Côte d’Ivoire dey collect between 0.5% and 1% FOB, so Nigeria own wey reach 4% no get balance.
Ajayi-Kadiri still raise alarm say port congestion dey choke manufacturers because of Customs new clearing technology wey dem call B’Odogwu, wey get technical problem. Importers dey pay heavy demurrage since their containers no fit clear quick.
He add say government suppose focus on trade facilitation instead of over-taxing manufacturers, because if cost of production reduce, Nigeria manufacturers fit produce more, employ more people and contribute bigger share to GDP.
For im words: “Government go make more money if dem support production, not when dem kill am with plenty levy. Manufacturing sector no suppose dey contribute less than 10% to GDP for biggest economy for Africa.”
