The Nigeria Customs Service (NCS) has announced the exemption of raw materials, spare parts and certain machinery from the four percent Free on Board (FOB) levy, in what it described as a move to ease production costs and stimulate critical sectors of the economy.
The decision was contained in a communique jointly signed by the Comptroller-General of Customs, Adewale Adeniyi, and the President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, after a high-level meeting in Ikeja, Lagos on Friday.
According to the communique, the exemptions apply to strategic imports considered vital to industrial production, aviation and healthcare. Commercial airline spare parts and goods under Chapters 98 and 99 of the Customs Tariff were specifically mentioned.
Manufacturers whose materials and equipment are not yet listed under these chapters will be fast-tracked into inclusion to ensure they benefit from the policy.
The Customs Service also clarified that payments already made by importers who were not previously covered will not be forfeited.
Instead, such payments will be credited into their accounts for future transactions once their inclusion is formalised.
The exemptions will also extend to government projects covered by Import Duty Exemption Certificates, goods imported for humanitarian or life-saving purposes, and beneficiaries under the Presidential Initiative aimed at strengthening the country’s healthcare value chain.
Explaining the rationale, the NCS stated that the new measures are part of a broader effort to balance the need for revenue generation with the responsibility of supporting manufacturers and other critical players in the economy.
Other reforms highlighted in the communique include the establishment of one-stop-shop frameworks to reduce bureaucratic bottlenecks, the elimination of redundant checkpoints, the deployment of digital solutions to fast-track trade processes, and the use of automated risk assessment systems to ease compliance for legitimate businesses.
The Manufacturers Association of Nigeria welcomed the announcement, particularly praising the expansion of the Authorised Economic Operator scheme by the Customs Service, which grants compliant traders special privileges. However, MAN appealed for clearer admission guidelines so that more manufacturers can benefit from the scheme.
To ensure smooth implementation, MAN, the NCS and the Federal Ministry of Finance have agreed to commence immediate tripartite consultations to determine modalities for onboarding additional manufacturers and executing the exemptions.
They also resolved to create formal engagement channels for regular policy updates, timely feedback and periodic reviews to assess the effectiveness of the changes.
Industry watchers believe the development could significantly lower the cost of doing business, enhance local industrial productivity and boost growth in the aviation and healthcare sectors.
The exemptions are also expected to provide relief to manufacturers struggling with high input costs at a time when the Nigerian economy is striving to diversify and reduce its dependence on imports.
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