08/02/2025
_N2.84 TRILLION CUSTOMS CHARGE: A Ticking Time Bomb for Nigeria's Economy_
Lagos, Nigeria - As Nigeria struggles to alleviate poverty and promote economic growth, a recent policy introduced by the Customs Service has raised concerns among stakeholders. The new 4% customs administration charge on Free On Board (FOB) value is expected to generate N2.84 trillion annually, sparking debates about its impact on businesses and consumers.
According to Dr. Abubakar Bukola Saraki, this additional charge will inevitably be passed on to consumers, exacerbating the financial burdens of millions of struggling households. The former Governor of Kwara State expressed his concerns on Facebook, highlighting the need for the government to reconsider this policy.
Critics argue that this new fee will hinder the government's efforts to promote the ease of doing business in Nigeria. With many businesses already struggling to stay afloat, the additional cost will likely lead to increased prices of goods and services, ultimately affecting consumers.
The Customs Service already receives a budget and an incentive percentage on total customs duties collected. Therefore, the need for an additional N2.84 trillion annually has raised eyebrows. Furthermore, the fact that this charge is not restricted to luxury goods but applies to all imports, including raw materials, has sparked concerns among industries that rely heavily on imports.
As Nigeria navigates its economic challenges, it is essential for policymakers to consider the potential consequences of their decisions. The government must weigh the benefits of this new policy against its potential impact on businesses and consumers. In light of the current economic climate, it may be wise to reconsider this policy and explore alternative solutions that promote economic growth and alleviate poverty.
We urge the government to take a closer look at this policy and its potential effects on the Nigerian economy. By doing so, we can work towards creating a more business-friendly environment that benefits all stakeholders.
— Comrade Rasaq Olarewaju Abata
National President,
BSST - BUKOLA SARAKI STRATEGY TEAM.
