Halt enforcement of 4 per cent CPC now —LCCI urges FG, NCS •Says sudden implementation, contradiction of international best practices

The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government and the Nigeria Customs Service (NCS) to immediately suspend the enforcement of the 4%Customs Processing Charge (CPC), which came into effect from February 4, this year, describing the implementation as  ‹abrupt› and a contradiction of international best practices.

The Chamber, in a statement signed by its Director General, Dr. Chinyere Almona, stated that implementation of trade-related policies, such as CPC, should always be through transparent and inclusive procedures. It, therefore, expressed concerns over the ‹abrupt› implementation of the newly-introduced charge without fully engaging stakeholders.

The business advocacy group noted that though the 4% charge is backed by the provisions of the Nigeria Customs Service 18, it however expressed concerns at its sudden implementation, without consultations with relevant stakeholders.

The Chamber, therefore, called on the federal government and NCS to suspend the enforcement of the charge, and embark on a structured sensitization process, to ensure stakeholders are adequately informed and prepared before its implementation.

«While we recognize that the four percent charge is backed by the provisions of the Nigeria Customs Service Act 2023, specifically under Section 18, we are deeply troubled by the manner of its sudden implementation without consultations with relevant stakeholders.

«Section 23 of the same Act clearly mandates public notification and stakeholder engagement before the introduction of new charges. Unfortunately, the business community, including importers, exporters, freight forwarders, and clearing agents, was not given any prior notice or opportunity to prepare for this additional financial burden,» it stated.

The Chamber also urged all government agencies concerned, to be sensitive to any additional cost burden on businesses and regulations that can create a difficult business environment; since many businesses,.presently grapple with various levies, taxes, and charges.

It added that the sudden enforcement of the charge is already disrupting business operations, increasing transaction costs, and causing uncertainty in the trading environment, a development, it described as detrimental to economic growth and investor confidence.

LCCI therefore called for more efficiency in port operations to ease the import and export of goods, reduce corruptive tendencies, and take trade facilitation as equally important as revenue generation.

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