Saraki Condemns New 4% FOB Charge on Imports, Calls for Immediate Suspension

Former Senate President, Dr. Bukola Saraki, has strongly opposed the newly introduced 4% charge on the Free On-Board (FOB) value of imports by the Nigeria Customs Service, describing it as an unnecessary financial burden on businesses and consumers.

The policy, announced by Customs spokesperson Abdullahi Maiwada on Wednesday, is expected to generate an additional N2.84 trillion annually, based on Nigeria’s estimated N71 trillion annual imports.

According to Maiwada, the charge—calculated on the value of imported goods, including transportation costs up to the port of loading—is essential for the efficient operation of the service.

However, Saraki, in a social media statement, questioned the rationale behind the new levy, pointing out that the Customs Service already receives budgetary allocations and earns a percentage of total customs duties collected. He argued that the additional revenue would primarily cover administrative costs, which he estimated at over $1.5 billion—an amount he considers excessive given Nigeria’s current economic hardships.

The former Senate President also criticized the blanket application of the charge, noting that it affects all imports, including raw materials needed by industries. He warned that this would translate to an additional 80% charge on duty amounts for businesses, inevitably driving up costs for consumers and worsening economic conditions for millions of Nigerians.

Saraki called on the government to immediately suspend the policy, emphasizing that it contradicts efforts to improve the ease of doing business in the country.

His Statement Reads:
“With our annual imports estimated at N71 trillion, the new 4% customs administration charge on FOB value will amount to N2.84 trillion. Does this mean the Customs Service needs an extra N2.84 trillion annually to operate?

“Let’s not forget that Customs already has a budget and also receives a percentage of total duties collected. Now, they plan to spend over $1.5 billion on operational costs in a country where businesses are shutting down and the poverty index is alarming.”

“This charge is not even limited to luxury goods—it applies across all imports, including raw materials for industries. For importers whose duty is only 5%, the Customs agency will now impose an extra 80% charge as administrative fees. How does this make sense or support the government’s ease of doing business agenda?”

“The government must urgently reconsider this policy and put it on hold. Given the current economic struggles, now is not the time for such a burden on Nigerians.”