The Manufacturers Association of Nigeria has warned that the new 4% import levy will raise production costs, worsen inflation, and reduce industrial competitiveness.
The Manufacturers Association of Nigeria (MAN) has cautioned that the Federal Government’s reintroduction of a 4% Free-on-Board (FOB) import levy will push production costs higher and worsen inflation. In a statement signed by its Director General, Segun Ajayi-Kadir, the group warned that the levy, effective August 4, 2025, will raise raw material import bills beyond the N6.6 trillion recorded in 2024.
“Clearly the cost will be passed on to consumers and this will fuel inflation, which already stands at 21.88% as at July 2025, and undermine the prevailing struggle with high inflation,” MAN stated.
The association argued that the levy makes Nigeria uncompetitive compared to peers like Ghana and Côte d’Ivoire, where similar fees range between 0.5% and 1%. It also criticized Nigeria Customs Service platform failures that have slowed clearance and increased factory stock-outs. MAN urged government to suspend the levy until December 31, 2025, while retaining the current 1% CISS + 7% collection fee.