The Importers Association of Nigeria (IMAN) reiterated its strong opposition to the proposed 4% Free on Board (FOB) levy by the Nigeria Customs Service (NCS) during its maiden National Executive Council (NEC) meeting held in Apapa, Lagos.
The levy, introduced under the new NCS Act of 2023, is seen as a policy blunder that could have far-reaching consequences for the economy.
Condemnation of the Levy
IMAN condemned the levy, estimating that it could add N3 to 4 trillion annually to freight costs, which would be directly passed on to consumers. This, according to the association, would be economically disastrous, fueling inflation, disrupting supply chains, and hurting productivity.
Impact on Industries and Consumers
Acting National President/BOT Chairman, High Chief Gilbert Obi, highlighted the potential impact of the levy on industries and consumers. He noted that the increased costs would cripple industries and punish consumers, citing the example of a 2006 Toyota Corolla now costing between N6-9 million.
Obi also pointed out that the levy would lead to a significant increase in license renewal fees for clearing agents and freight forwarders.
Questioning the Modernisation Programme
Obi questioned the need for the NCS to spend trillions on a software platform called B’odogwu, which he described as “epileptic if not comatose.” He argued that the platform would soon become obsolete, and the Nigerian Revenue Service would take over customs collections by January 2026.
Call for a Business-Friendly Environment
IMAN’s Chairman, South West Zone, Chief (Dr.) Kelly Dike, advocated for a business-friendly environment anchored on sustainable reforms, guided by principles of ease of doing business and favorable monetary and fiscal policies for trade facilitation in Nigeria. He emphasized the need for the government to consult with IMAN before imposing any levy.
Unification of Splinter Groups
A key outcome of the NEC meeting was the unification of various splinter groups within IMAN. The association resolved to work together to address the challenges facing the industry, including unnecessary suspicion and rancour, lack of clear leadership direction, funding challenges, and revenue collection issues.
Key Objectives of IMAN
The association’s key objectives include providing a unifying umbrella for importers in Nigeria, protecting members’ investments and interests, and serving as the voice of importers in Nigeria. IMAN remains committed to promoting a favorable trade environment and protecting the interests of its members.