How Can This Make Sense? Saraki Slams Customs Fee

By Emmanuel Kwada

Dr. Bukola Saraki is sounding the alarm on the newly introduced 4% customs administration charge on Free On Board (FOB) value, warning that it will have devastating effects on Nigerian businesses and consumers.

With annual imports estimated at N71 trillion, this new fee will rake in a whopping N2.84 trillion, begging the question: does the Customs Service really need this additional funding to do its job? Especially considering they already have a budget and receive a percentage of total customs duties collected as incentives.

The former Senate President is also concerned about the exorbitant running costs of the Customs Service, which will exceed $1.5 billion.

It applies to all imports, including raw materials for industries with already low duty rates of 5%

In a country grappling with poverty and business closures, this added expense will inevitably be passed on to consumers, further straining the budgets of millions of struggling households. What’s more, this new fee isn’t limited to luxury goods; it applies to all imports, including raw materials for industries with already low duty rates of 5%. This means the customs agency will now charge importers an extra 80% of the duty amount as administrative fees, which seems counterintuitive to the government’s policy of promoting ease of doing business.

It’s crucial for the government to reconsider this decision and find alternative solutions that won’t exacerbate the economic challenges faced by its citizens

Saraki is urging the government to put this policy on hold immediately, citing the immense hardship it will inflict on Nigerians. The timing couldn’t be worse, with many businesses already struggling to stay afloat. It’s crucial for the government to reconsider this decision and find alternative solutions that won’t exacerbate the economic challenges faced by its citizens.