Freight forwarders in the nation’s maritime industry have called for caution over the sudden implementation of a 4% customs processing charge, calling for its immediate suspension and a structured sensitization process.
Speaking at a press briefing on Tuesday, the former acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, criticized the lack of due process in rolling out the new charge, arguing that while the levy is backed by law, its execution has been flawed.
According to him, the provision for the 4% charge is embedded in the Customs Act 2023, specifically in Section 18, which mandates customs to collect not less than 4% of the free-on-board (FOB) value of imports as a financing mechanism for customs operations. However, he pointed out that the manner in which the Nigeria Customs Service introduced the levy contradicts Section 23 of the same Act, which requires public notification and stakeholder engagement before implementing new charges.
“This increment was imposed without the necessary sensitization of the trading community, as required by law,” Farinto said. “The Act clearly states that customs must ensure that all relevant information on importation, exportation, and applicable charges is made publicly available. However, we only woke up to find the new charge embedded in the system without prior notice, which is unacceptable.”
He emphasized that even in developing economies, new trade-related policies follow procedural codes, including issuing circulars to relevant stakeholders such as government agencies, freight forwarders, and trade associations.
“There has been no official circular or public notification on this,” he added. “This is against international best practices, and as such, I advise that this charge be withdrawn immediately and a minimum of 90 days be given for proper sensitization before implementation.”
Farinto advised freight forwarders to resist hasty payment of the 4% charge, suggesting that cargo should be left at ports for at least a week in protest. “Agents should not be in a rush to pay this charge. Let us engage in peaceful protest by delaying cargo clearance. If necessary, affected traders will seek legal redress, as this implementation is an imposition and an illegality,” he asserted.
While acknowledging that the customs service has the legal right to impose the charge, he insisted that due process must be followed. “This is not about whether customs has the authority to implement the charge. It is a law that was signed at the twilight of the last administration. However, even if customs wants to implement it, there are procedures that must be followed,” he said.
Farinto expressed concerns that the sudden implementation of the charge could negatively impact Nigeria’s already declining import trade, further increasing the cost of doing business at the ports. He highlighted that Nigeria’s import volume has been on a downward trend, and additional levies without proper consultation would worsen the situation.
“This is an era where our import volumes are already shrinking. If this continues, we will keep discouraging trade, which will have dire economic consequences,” he warned. “Traders must be informed in advance so they can factor in these costs before shipping their goods. International trade is not a buy-and-sell business—it requires strategic planning.”
The freight forwarder leader announced plans to submit a formal petition to the presidency and relevant agencies, urging the government to reconsider the timing and approach to implementing the 4% charge. He stressed that President Bola Ahmed Tinubu’s administration, which has promised to alleviate economic hardships, should not allow policies that could further strain businesses.
