Customs exempts manufacturers from 4% FOB levy, offering relief for industry, aviation, and healthcare with broader trade facilitation reforms

The measure was announced in a communique jointly signed on Friday by the Comptroller-General of Customs, Adewale Adeniyi, and the President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye.

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The agreement followed high-level consultations in Ikeja, Lagos, and secured the approval of the Minister of Finance and Coordinating Minister of the Economy.

The exemptions cover strategic imports essential to industrial production, aviation, and healthcare.

Importers of commercial airline spare parts, alongside manufacturers bringing in raw materials and equipment listed under Chapters 98 and 99 of the Customs Tariff, are among the immediate beneficiaries.

Manufacturers already captured under these tariff chapters have been advised to apply for pre-release of consignments to avoid demurrage charges.

For MAN members whose inputs are not yet listed, plans are underway to onboard them swiftly through a tripartite consultation involving NCS, MAN, and the Ministry of Finance.

The communique also provided relief for manufacturers who have previously paid the levy but are awaiting onboarding. Such payments will be credited to their accounts and applied against future customs-related transactions.

Beyond manufacturers, exemptions also apply to government projects with Import Duty Exemption Certificates, humanitarian imports, and healthcare-related goods under the Presidential Initiative on unlocking Nigeria’s healthcare value chains.

According to the NCS, the exemptions underline its commitment to supporting key sectors of the economy while sustaining revenue generation.

Broader reforms are also in motion, including one-stop-shop regulatory frameworks, fewer checkpoints, integration of digital solutions for faster clearance, and the rollout of automated risk assessment systems to cut compliance costs for compliant traders.

MAN, in its response, commended Customs for introducing the Authorised Economic Operator scheme, which offers compliant operators special clearance privileges.

However, it urged the service to provide clear guidelines for entry to ensure wider participation among manufacturers.

Both organisations have also agreed to establish structured consultation mechanisms, ensuring constant dialogue, early engagement before policy changes, and periodic reviews of outcomes.

The reforms are expected to ease the cost of doing business, enhance industrial productivity, and support the growth of Nigeria’s aviation and healthcare sectors.

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By exempting critical imports from the 4 per cent FOB levy, the Nigeria Customs Service and MAN have signalled a shared determination to strike a balance between revenue generation and strengthening the nation’s industrial base.