Customs, Manufacturers Strike Historic Pact to End 4% FOB Charge, Boost Nigeria’s Industrial Competitiveness
Kathy Kyari
The Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have entered into a landmark pact that abolishes the controversial 4% Free-on-Board (FOB) charge, a move projected to cut production costs, strengthen industrial capacity, and improve Nigeria’s global competitiveness.
The breakthrough was announced on friday in Lagos after a strategic engagement between the Comptroller General of Customs, Bashir Adewale Adeniyi, and MAN President, Otunba Francis Meshioye, who both pledged to deepen dialogue and cooperation for sustained industrial growth.
Meshioye, while congratulating Adeniyi on his election as chairperson of the World Customs Organization (WCO) Council, described the development as a proud milestone for Nigeria. He also stressed the importance of continuous engagement with Customs to resolve challenges such as the abolished FOB charge and delays on the B’Odogwu platform.
He assured that MAN would continue collaborating with Customs and government institutions to streamline trade, reduce port costs, and enhance industrial competitiveness.
Key provisions of the new agreement include:
Exemption from 4% FOB charges for manufacturers importing raw materials, machinery, and spare parts under Customs Tariff Chapters 98 and 99.
Onboarding of additional manufacturers not currently covered under those chapters.
Tripartite consultations involving Customs, MAN, and the Ministry of Finance to fast-track onboarding.
Credit system for manufacturers who have already paid the FOB charge, to be offset in future transactions.
Extended exemptions for humanitarian goods, healthcare imports, government projects, and commercial airline spare parts.
Adeniyi also briefed manufacturers on Customs’ trade facilitation initiatives, including the Authorised Economic Operator (AEO) programme, Advance Ruling, Time Release Studies, and the integration of the B’Odogwu system into the National Single Window project, set for launch in the first quarter of 2026.
While welcoming the AEO scheme, Meshioye urged Customs to introduce clear guidelines to widen manufacturer participation.
Both institutions agreed to set up structured policy dialogues, proactive feedback systems, and periodic reviews to track progress and identify new opportunities for collaboration.
“This partnership reflects our shared commitment to Nigeria’s economic transformation through industrial growth, job creation, and export promotion,” said Adeniyi.
“Constructive dialogue like this is essential to building a predictable customs environment that supports manufacturing excellence,” Meshioye added.
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