The Sea Empowerment and Research Centre (SEREC) says the suspension of the implementation of the four per cent Fee On Board (FOB) levy collected by the Nigeria Customs Service (NCS) on imports will ease inflationary pressure.
SEREC made this known in a statement by its Head of Research, Eugene Nweke, on Thursday in Abuja.
It said the move would prevent additional costs from being passed on to consumers, providing relief amid high inflation and forex volatility affecting traders and importers.
Freedomonline reports that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Sept. 15 announced the suspension in a statement by the Ministry’s Permanent Secretary, Special Duties, Raymond Omachi.
Edun said the decision followed extensive consultations with industry stakeholders, trade experts and relevant government officials, who had expressed concern about its negative implications for the economy.
In line with the directive, the NCS began consultations with the Ministry of Finance to seek guidance on alternative measures to adopt during the suspension to ensure continuity of service delivery to stakeholders.
SEREC commended the Federal Government for the directive, saying it reflected political sensitivity to the impact of the levy on import costs, inflation and business competitiveness.
It said the move signaled government responsiveness to stakeholder pushback, particularly from importers, trade groups and consumers.
It described the ministry’s suspension as prudent for macroeconomic stability but recommended a multi-stakeholder task force to design a balanced funding formula.
“While the ministry has provided short-term relief, the underlying legal provision ensures that the debate over the four per cent levy will persist until a sustainable and equitable funding alternative is institutionalised,” it noted.
It said the situation reflected the tension between revenue generation and trade facilitation.
SEREC however expressed concern that it could create a funding gap for NCS operations and a possible rise in non-transparent recovery practices unless alternative funding was provided.
“Resolution requires legislative amendment or clarification of the levy framework and development of alternative Customs funding models that avoid trade distortions,” it stated.
SEREC said that due to the policy uncertainty surrounding the FOB levy, traders might perceive regulatory flip-flops as a risk to business planning.
“This is a policy pause, not a resolution, the issue will resurface unless law and policy are harmonised,” it warned.
Freedomonline recalls that on February 4, the NCS announced plans to implement a four per cent charge on the FOB value of imports, in line with the provisions of the NCS Act 2023.
Since the announcement, the implementation has been stalled amid widespread concerns by stakeholders and experts, who warned that the move would raise importers’ costs and trigger cost-push inflation.
