The groundswell of opposition against the implementation of 4% Customs Administration Charge on Free on Board (FOB) value by the Nigeria Customs Service (NCS) continues to mount, as the Nigeria Employers Consultative Association (NECA) argued that imposing themlevy, amend prevailing economic hardships is ill-timed and detrimental to businesses and Nigerians.
The association, in a statement signed by its Director General, Mr. Adewakun-Smatt Oyerinde, on Sunday, argued that the levy had become burdensome since the nation’s business environment is already burdened with multiple taxes, unpredictable policies, and economic challenges.
It stated that, with rising unsold inventories and growing unemployment, policies should support businesses and not further strangulate them.
“This additional financial import-dependent businesses will escalate production costs, fuel inflation, and threaten jobs. Ultimately, consumers will suffer from higher prices, worsening an already challenging economic climate,” it stated
The association criticized the Nigeria Customs Service (NCS), for prioritizing revenue generation over its core mandate of trade facilitation and economic development, describing the approach as counterproductive while also directly contradicting the government’s Ease of Doing Business agenda.
NECA argued further that with a revenue target of N10 trillion set for the Nigeria Customs Service in the 2025 Budget by the National Assembly, this levy appears to be a desperate attempt to meet revenue projections at the expense of businesses and ordinary Nigerians. While the Government may achieve its revenue goals, the unintended consequences will be severe “higher costs of goods, business closures, rising unemployment, and worsening economic hardship for millions of citizens”.
The association also believed the new charge contradicts ongoing tax reform efforts, led by the Presidential Fiscal Policy and Tax Reforms Committee, aimed harmonising taxes and support business sustainability.
“At a time when businesses are calling for a streamlined tax system, this levy undermines reform efforts and sends a negative signal to investors,” he warned.
NECA, therefore, called for an immediate reversal of this levy and urged the government to engage with stakeholders to develop a more sustainable and business-friendly approach to revenue generation.
READ ALSO: NECA rejects new 4% customs levy, warns of economic devastation
and then