The Nigeria Customs Service has introduced major relief measures for manufacturers and key sectors of the economy by exempting raw materials, spare parts, and selected machinery from the payment of the four per cent Free on Board levy.

Details of the decision were outlined in a communique jointly signed on Friday by the Comptroller-General of Customs, Adewale Adeniyi, and the President of the Manufacturers Association of Nigeria, Francis Meshioye.

The agreement followed a high-level meeting between both parties in Ikeja, Lagos, to address the levy’s application.

According to the communique, the approval for the exemption was secured after consultations with the Minister of Finance and the Coordinating Minister of the Economy.

It applies to strategic imports essential for industrial production, aviation, and healthcare.

Importers of commercial airline spare parts are among the beneficiaries of the exemption.

Also included are importers of raw materials, machinery, and spare parts listed under “Chapters 98 and 99 of the Customs Tariff.” Manufacturers already covered under these chapters have been advised to apply for pre-release of consignments to avoid demurrage charges.

For MAN members who bring in raw materials and equipment not yet listed under Chapters 98 and 99, the communique noted that efforts would be made to onboard them quickly so they can also benefit from the exemption.

To achieve this, MAN, NCS, and the Federal Ministry of Finance have agreed to work closely to fast-track their inclusion.

A tripartite consultation will begin immediately to set out the modalities for this process.

The communique further offered relief for manufacturers who have already paid the “4 per cent FOB levy” but are not yet onboarded under Chapters 98 and 99.

These payments will be credited to their accounts and applied toward future customs transactions once onboarding is complete.

Additionally, the exemptions cover government projects with “Import Duty Exemption Certificates,” goods imported for humanitarian or life-saving purposes, and beneficiaries of the “Presidential Initiative” aimed at strengthening Nigeria’s healthcare value chains.

The NCS explained that the exemptions reflect its commitment to supporting critical sectors while maintaining its revenue responsibilities.

“Beyond existing exemptions, discussions focused on additional trade facilitation initiatives being implemented by the NCS to support manufacturing operations.

These include the development of one-stop-shop frameworks to streamline regulatory processes, reduce bureaucratic bottlenecks, and systematic reduction of unnecessary checkpoints that add costs without delivering value,” the communique stated.

Other planned reforms include the adoption of digital solutions to speed up trade processing while protecting national security, as well as technology-driven systems to enable real-time clearance.

Automated risk assessment tools are also being deployed to reduce compliance costs for legitimate businesses.

In its reaction, MAN commended the NCS for launching the “Authorised Economic Operator scheme,” which grants compliant traders special clearance privileges.

However, the association called for clear admission guidelines to allow more manufacturers to benefit from the scheme.

Both organisations also agreed to deepen their partnership by setting up formal consultation channels.

These will ensure regular engagement on policy updates, early involvement in customs reforms, real-time feedback mechanisms to measure impact, and periodic review meetings to track progress and explore new areas of cooperation.

The outcome of these consultations represents a major step toward reducing the cost of doing business for manufacturers, boosting industrial productivity, and supporting the growth of Nigeria’s aviation and healthcare industries.

By exempting critical imports from the “4 per cent FOB levy” and committing to broader trade facilitation, the NCS and MAN have shown a shared determination to balance revenue generation with the need to strengthen the nation’s productive sectors.

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