Major Relief: Customs Exempts Manufacturers’ Raw Materials, Spare Parts from 4% Import Levy
In a landmark move designed to significantly reduce the cost of doing business and boost domestic production, the Nigeria Customs Service (NCS) has granted wide-ranging exemptions to manufacturers, the aviation sector, and the healthcare industry from the controversial four per cent Free-on-Board (FOB) import levy.
The policy shift was cemented in a joint communiqué signed on Friday by the Comptroller-General of Customs, Adewale Adeniyi, and the President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, following a high-level consultation in Lagos.
The exemption, which secured approval from the Minister of Finance and Coordinating Minister of the Economy, targets strategic imports vital for economic stability. The core of the relief applies to raw materials, machinery, and spare parts imported by manufacturers whose goods fall under the concessions specified in Chapters 98 and 99 of the Customs Tariff.
Crucially, the new directive also extends this significant relief to importers of commercial airline spare parts, alongside goods imported for humanitarian/life-saving purposes, and consignments related to the Presidential Initiative for unlocking Nigeria’s healthcare value chains. Government projects backed by Import Duty Exemption Certificates (IDECs) are also now exempt.
For manufacturers not yet covered by the designated tariff chapters, the NCS and MAN have committed to a swift resolution. A tripartite consultation involving the Federal Ministry of Finance will be initiated immediately to design modalities for the speedy onboarding of these members, ensuring they too can benefit. Furthermore, the Customs Service is offering financial relief to those who have already made payments, by promising to credit the 4 per cent FOB levy paid to their accounts for future customs transactions once their documentation is complete.
The agreement also highlighted the Customs Service’s commitment to additional trade facilitation initiatives, including developing a “one-stop-shop” framework to eliminate bureaucratic delays, reducing checkpoints, and integrating advanced digital solutions for accelerated trade processing and automated risk assessment. Both parties have agreed to establish formal consultation mechanisms for regular dialogue on policy changes, signaling a new era of collaboration between the government and the productive sectors of the Nigerian economy.
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