Following the Federal High Court ruling that barred the Nigeria Customs Service (NCS) from collecting excise duty on non-alcoholic, carbonated, and sweetened beverages, the service has said it is currently studying the judgment and will take appropriate action in the best interest of the nation.
Speaking exclusively with Shipping Position Daily, the National Public Relations Officer of the NCS, Assistant Comptroller Abdullahi Maiwada stated that the service is reviewing the court’s decision in consultation with its legal team before determining its next steps.
“The briefing I got from the legal adviser is that we will study the judgment, and they are going to take action—whatever is appropriate in the best interest of the service and the nation as a whole,” the spokesperson said.
When asked whether the service would be appealing the judgment or complying with the ruling immediately, he maintained that no decision had been reached yet, reiterating that whatever step the NCS takes will be legally sound and aligned with national interest.
On concerns about how the suspension of excise duty collection might affect the revenue projections of the service, the spokesperson noted that it would be premature to speculate on potential impacts.
“We are studying the judgment, and we can’t quickly predict or start making presumptions out of the decision. Whatever action we are going to take will be in the interest of the nation and the service at large, and it will be legally binding,” he stated.
The court, in its ruling, had declared that the NCS lacked the statutory power to assess or enforce the collection of excise duties on carbonated drinks without clear legal backing. It also voided the 2022 Fiscal Policy Measures and Tariff Amendments, which introduced the excise duty, and directed the customs service to halt collections pending compliance with Section 13 of the Customs, Excise Tariff, etc. (Consolidation) Act.
While industry stakeholders, particularly manufacturers, have welcomed the ruling, all eyes are now on the government and the customs service to see if they will challenge the decision in a higher court or comply fully with the verdict.
Reacting to the ruling Emeka Nwabueze, a member of the Manufacturers Association of Nigeria, expressed relief at the Federal High Court’s ruling barring the NCS from collecting excise duties.
He stated “It’s a welcome development because the pressure that manufacturers are going through is enormous. Every opportunity we have to give them relief, I think we should give them relief.”
Nwabueze highlighted the significant challenges manufacturers face, including fluctuating foreign exchange rates and rising energy costs, which heavily impact their operations. He emphasized:”Manufacturers have huge exposure to those two critical variables. The shock on them is already very heavy. On top of that, you have consumers whose purchasing power is now very weak.”
He further suggested that the Nigeria Customs Service should allow the current situation to persist to offer manufacturers some breathing space, stating “If I have my way, I would say that at least the Customs should just let the sleeping dog lie for now, so that the manufacturer can have some breathing space.”
Nwabueze also expressed concerns about the proposed 4% customs processing fee, noting that it would further compound the challenges faced by manufacturers and the entire maritime ecosystem.
