Strong opposition has greeted the introduction of a new 4% administrative charge on Free-on-Board (FOB) value of imports by the Nigeria Customs Service (NCS), alongside the Nigerian Ports Authority’s (NPA) proposed 15% increase in port charges.

The Nigeria Employers’ Consultative Association (NECA), the Manufacturers Association of Nigeria (MAN), and former Senate President Bukola Saraki, in separate statements, criticised the policies as ill-timed and called for their immediate reversal.

NECA described the NCS levy as a desperate move to meet its N10 trillion revenue target outlined in the 2025 national budget, warning that it would extract N2.84 trillion from private businesses and drive up industrial duty payments by 80%.

MAN urged the NPA to abandon its planned tariff increase, arguing that it contradicts the federal government’s commitment to improving Nigeria’s ease of doing business.

Saraki also condemned the NCS charge, warning that it would further impoverish Nigerians by inflating consumer prices.

NECA’s Director-General, Adewale-Smatt Oyerinde, stated that the levy undermines the ongoing tax reforms led by the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele.

“With an N10 trillion revenue target for the NCS in the 2025 budget, this levy appears to prioritise revenue generation at the expense of businesses and ordinary Nigerians,” Oyerinde said.

He warned of severe economic consequences, including rising inflation, business closures, and worsening hardship for millions of citizens. “At a time when businesses are clamouring for a streamlined tax system, this levy sends a negative signal to investors,” he added.

MAN’s Director-General, Segun Ajayi-Kadir, expressed concern over the NPA’s planned port charge hike, stating that it would exacerbate the struggles of businesses already burdened by high operational costs, forex instability, and rising energy prices.

“Increasing port tariffs now is ill-advised and contradicts the government’s ease of doing business agenda,” Ajayi-Kadir noted. “It will weaken Nigeria’s competitiveness in regional trade, leading to cargo diversion and increased smuggling.”

He suggested alternative revenue strategies, such as reducing turnaround time for vessels and enhancing cargo clearance efficiency, rather than imposing additional costs on businesses.

Similarly, Saraki criticised the NCS’s 4% charge via his verified X account, questioning the justification for an additional N2.84 trillion in administrative costs.

“With annual imports valued at N71 trillion, does this mean that the Customs Service requires an extra N2.84 trillion to function?” Saraki asked. “Importers will inevitably pass these costs onto consumers, worsening economic hardship.”

He emphasised that the new charge is not limited to luxury goods but applies to all imports, disproportionately affecting industries reliant on imported raw materials.

“This policy undermines the government’s ease of doing business strategy. The authorities must urgently reconsider and suspend its implementation,” Saraki insisted.

Following the NCS announcement, the NPA also defended its 15% tariff increase, stating that it was necessary to address ageing infrastructure, outdated equipment, and slow port expansion.

“The 15% upward adjustment across all NPA rates and dues is essential to revitalise port infrastructure, which has deteriorated over the years,” the agency said in a statement.

However, stakeholders argue that increasing port charges would make Nigerian ports less competitive and hinder trade growth. MAN urged the government to engage with businesses to explore alternative revenue-generation strategies that would not stifle industrial growth or escalate inflation.

“The manufacturing sector cannot afford such an increase at this time. This move contradicts the administration’s efforts to position Nigeria as a trade hub in West Africa and could derail economic stabilisation efforts,” MAN said.