New Customs Fee Is Ill-timed , Will Inflict More Hardship On Nigerians, Says Saraki  …. Calls for immediate suspension 

By Omowumi Omotosho

Former Nigeria Senate President, Dr Bukola Saraki has strongly criticized the federal government’s newly introduced 4% customs administration charge on Free On Board (FOB) value, warning that it will increase costs for businesses and consumers at a time of severe economic hardship.

In a post made on his Instagram page on Saturday, Saraki questioned the necessity of the charge, arguing that it would generate an additional ₦2.84 trillion annually for the Nigeria Customs Service (NCS), despite the agency already receiving funding through budget allocations and a percentage of total customs duties collected.

“With our annual imports estimated at ₦71 trillion, the new 4% customs administration charge on Free On Board (FOB) value will come to ₦2.84 trillion. Does this mean that the Customs Service requires an additional ₦2.84 trillion annually to do its job?,” he questioned

Saraki further criticized the exorbitant increase in Customs’ operational costs, noting that the agency is set to spend over $1.5 billion (₦2.84 trillion), an amount he described as excessive given Nigeria’s poverty index and struggling business environment.

“Now, they want to spend more than $1.5 billion on running costs in a country with the poverty index we have and with many businesses closing down,” he wrote.

One of Saraki’s key concerns is the inevitable impact on consumers, as businesses will be forced to pass on these additional costs. He warned that millions of struggling Nigerian households will bear the burden of higher prices, worsening inflationary pressures. The former Senate President also criticized the broad application of the charge, pointing out that it is not restricted to luxury goods but applies across all imports. He highlighted the disproportionate impact on industries that import raw materials, stating that companies paying only 5% in import duties will now face an additional 80% of their duty amount as administrative fees.

“Importers will inevitably pass these costs on to consumers, further straining the budgets of millions of struggling households. This new fee of 4% is not even restricted to luxury goods but across all imports, so even for industries that import their raw materials whose duties are only 5%, the customs agency will now charge importers an extra 80% of the duty amount as administrative fees!,” he said.

Saraki also questioned the economic logic behind the policy, particularly in the context of the government’s efforts to improve the ease of doing business in Nigeria.

“How can this make sense or support the government’s policy of promoting the ease of doing business?,” he queried.

Saraki therefore called for the immediate suspension of the policy, stressing that it is ill-timed given the economic hardship Nigerians are already facing.

“The government must urgently reconsider this policy and put it on hold immediately. Especially now with what Nigerians are going through,” he concluded.