Bukola Saraki, former senate president, has raised concerns over the implementation of the 4 percent free-on-board (FOB) levy introduced by the Nigeria Customs Service (NCS).
In a post on X on Saturday, Saraki questioned, warning that
it would place undue burden on businesses and consumers.
“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?” the post reads.
“Don’t forget they already have a budget and get an
incentive percentage on total customs duties collected.”
Saraki also criticised the NCS’ rising operational costs,
noting that it now seeks to “spend over $1.5 billion annually” in a country
grappling with a high poverty index and widespread business closures.
“Importers will inevitably pass these costs on to consumers,
further straining the budgets of millions of struggling households,” he said.
“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 senate president called on the federal government
to urgently reconsider and suspend the policy, warning that its implementation
would hurt Nigerians more.
On February 5, the NCS said it will implement a 4 percent
charge on the FOB value of imports.
The NCS said the directive aligns with the provisions of the
Nigeria Customs Service Act (NCSA) 2023.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com