Former Senate President Bukola Saraki has criticised the new 4% charge on the Free On-Board (FOB) value of imports, introduced by the Nigeria Customs Service.
The charge, announced by Customs Spokesman Abdullahi Maiwada on Wednesday, aims to generate an additional N2.84 trillion annually, based on Nigeria’s estimated N71 trillion in annual imports.
Saraki expressed concerns on social media, questioning the necessity of the new levy, as the Customs Service already receives a budget and an incentive percentage from total customs duties collected.
He also criticized the projected $1.5 billion in annual running costs for the agency, calling it excessive, especially given Nigeria’s poverty index and the economic challenges faced by businesses.
The former Senate President noted that the levy would apply not only to luxury goods but also to all imports, including raw materials essential for industries.
His words: “With our annual imports estimated at N71 trillion, the new 4% customs administration charge on Free On Board (FOB) value will come to N2.84 trillion. Does this mean that the Customs Service requires an additional N2.84 trillion annually to do its job?
“Don’t forget they already have a budget and get an incentive percentage on total customs duties collected.
“Now, they want to spend more than $1.5 billion on running costs in a country with the poverty index we have and with many businesses closing down.
“Importers will inevitably pass these costs on to consumers, further straining the budgets of millions of struggling households.
“This new fee of 4% is not even restricted to luxury goods but across all imports, so even for industries that import their raw materials whose duties are only 5%, the customs agency will now charge importers an extra 80% of the duty amount as administrative fees!
“How can this make sense or support the government’s policy of promoting the ease of doing business?
“The government must urgently reconsider this policy and put it on hold immediately. Especially not now with what Nigerians are going through,” he added.#Saraki
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