Former Chairman, Manufacturers Association of Nigeria (MAN), Ogun Chapter, Dr Wale Adegbite, has expressed concern over the reintroduction of four per cent Free on Board (FOB) charge by Nigeria Customs Service (NCS).
Adegbite said this in an interview with the News Agency of Nigeria (NAN) on Thursday in Ota, Ogun.
NAN reports that the reintroduction of four per cent FOB by NCS, had taken effect since Aug. 4.
According to him, the effect of the FOB fee is to increase the cost of all goods, machines and equipment imported into the country.
“Therefore, manufacturers will not be able to absorb this substantial increase in cost.
“We will have to pass the cost increase to the final consumer and the Nigerian citizens, which will drastically lead to increase in inflation,” he said.
Adegbite urged the federal government to create an enabling environment by making policies that are friendly and consistent, providing infrastructure and ensuring adequate security for manufacturers to thrive.
NAN reports that the Nigerian Federal Government, through the NCS, first introduced the 4 per cent FOB charge on imports on Feb. 5, inline with the NCS Act 2023.
However, the implementation was suspended on Feb. 11, to allow for more stakeholders’ consultation.
It has not been fully re-implemented since, though the NCS has announced plans to reintroduce it.
