By Sandra Chukwunyere
The Nigeria Customs Service (NCS) and the Manufacturers’ Association of Nigeria (MAN) have announced a significant development in their collaborative efforts to support Nigeria’s industrial growth and economic development objectives.
Following a productive strategic engagement between the two institutions, the NCS has exempted select manufacturers and importers from the 4% Free On Board (FOB) charge. This move aims to cushion the effects on the economy and facilitate trade.
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The exemption from the 4% FOB charge is a result of the Federal Ministry of Finance’s directive to temporarily suspend the charge, providing an opportunity for comprehensive stakeholder consultation as required under the Nigeria Customs Service Act 2023.
The NCS, in a joint press briefing with MAN in Lagos, revealed that the exemption would be granted to some categories of manufacturers and importers.
This decision is expected to reduce compliance costs and provide regular briefings on policy developments.
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- The President of MAN, Francis Meshioye, emphasized the importance of constructive dialogue in building a predictable customs environment that supports manufacturing excellence.
He stated that the engagement highlighted the need for clear alignment between customs trade facilitation objectives and manufacturing sector development needs. The discussions revealed multiple areas of mutual interest and support mechanisms available to boost manufacturing operations for the overall benefit of the Nigerian economy.
During the engagement, MAN provided valuable insights into operational challenges faced by the manufacturing sector and identified specific areas where enhanced collaboration could improve industrial competitiveness.
These areas included the implementation of the 4% FOB as funding for NCS Operations, multiple checkpoints as a threat to trade facilitation, multiple alerts in the clearance system, and the B’Odogwu platform glitches. The NCS and MAN agreed to work together to address these challenges and develop industry best practices.
The NCS and MAN have committed to strengthening their partnership to support Nigeria’s economic development.
The NCS has agreed to implement technology solutions that reduce compliance costs and provide regular briefings on policy developments.
MAN has committed to constructive engagement in policy dialogue processes, providing sector-specific expertise to inform customs policy development, and supporting member compliance with regulations.
Both organizations have expressed their commitment to implementing the agreements reached and continuing to build a customs environment that supports manufacturing excellence and meets national revenue and security objectives.
The outcomes achieved from the engagement demonstrate that constructive dialogue produces superior results for all stakeholders and is essential in maintaining the highest standards of regulatory compliance and economic governance.
The NCS and MAN have emphasized the importance of continued dialogue and collaboration to address the challenges facing the manufacturing sector.
Newspoint247online.com.ng reports that the engagement has highlighted the need for a strengthened partnership between the two institutions to support Nigeria’s economic transformation through enhanced manufacturing sector performance.
