LCCI Rejects Customs 4% FOB Import Charge, Seek Suspension

The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government and the Nigeria Customs Service (NCS) to suspend the enforcement of the newly introduced four per cent Customs Processing Charge (CPC).

The Chamber called for an engagement in a structured sensitisation process to ensure stakeholders are adequately informed and prepared before its implementation.

The newly introduced four per cent Customs Processing Charge (CPC) took effect on February 4, 2025.

The director-general of LCCI, Dr. Chinyere Almona said that “While we recognise that the four per cent 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.”

She explained that “Beyond the absence of consultation, any additional cost burden on businesses and regulations can create a difficult business environment. Currently, businesses grapple with various levies, taxes, and charges; and other policy cost implications. Most recently, the business community has been grappling with a planned 50 per cent hike in telecom tariffs in the face of rising logistics costs due to high energy prices.

“This lack of consultation and sensitisation contradicts international best practices, which require trade-related policies to be implemented through transparent and inclusive procedures. The sudden enforcement of this charge is already disrupting business operations, increasing transaction costs, and causing uncertainty in the trading environment. Such an approach is detrimental to economic growth and investor confidence.”

Almona noted that “We demand more efficiency with our port operations to ease the import and export of goods, reduce corruptive tendencies, and make trade facilitation as equally important as revenue generation.

“The Nigerian Customs Service surpassed its revenue target for 2024 by over a trillion Naira, reaching N6.1 trillion. This feat has informed an increase in the budget figure from N49.7 trillion to N54 trillion for the 2025 federal budget. With the massive revenue generation from the ports, we expect more investment into boosting port infrastructure, process automation, and a conducive business environment to support export earnings and boost our foreign exchange revenue.

She pointed out that the sudden implementation of this charge risks causing congestion at the ports, as many traders and clearing agents may hesitate to process shipments, leading to delays and possible disruptions in the supply chain.

LCCI said “while we look forward to a swift response by the Customs Service in backtracking on this levy imposition, we stand ready to collaborate with the government and other stakeholders to ensure that trade-related policies are executed in a manner that supports sustainable economic growth and prosperity for all Nigerians.”