Dike Onwuamaeze in Lagos and Kasim Sumaina in Abuja

The Manufacturers Association of Nigeria (MAN) has commended the federal government and the Minister of Finance and Coordinating Minister for the Economy over the recent suspension of the reintroduced 4.0 per cent Free-on-Board (FOB) charge on imports, which came into effect on August 4, 2025.

Similarly, the Airline Operators of Nigeria (AON) yesterday commended President Bola Tinubu and Edun, for the timely suspension of the FOB levy.

The Director General of MAN, Mr. Segun Ajayi-Kadir, said yesterday that the suspension has brought instant succour and encouragement to the manufacturing community in Nigeria and is great news to the business community.

Ajayi-Kadir said: “The minister just saved our country from a self-inflicted price escalation that could have unsettled the widely acknowledged stability and repurposing this administration has achieved.” 

He said the suspension also came “as a relief to our members and the broader manufacturing sector, which has been anxiously concerned about the imposition of the charge.”

Ajayi-Kadir also said MAN was confident that the Nigeria Customs Service (NCS), in keeping with its ongoing commendable reforms, “will swiftly communicate the directive to all relevant commands, so that the charge will go off its portal, while we earnestly await the full restoration of the B’Odogwu platform.”

He said the reintroduction of the charge was quite concerning for members of MAN who were genuinely apprehensive that it would lead to a significant escalation in the cost of raw materials, machinery and spare parts that are not available locally and therefore have to be imported.

He reiterated MAN’s commitment to working with the government and the NCS to streamline trade processes, reduce the cost of doing business at the port and enhance fiscal transparency.

“This is the best way to guarantee an efficient and friendlier trade facilitation ecosystem for the business community and by extension the overall wellbeing of the Nigeria citizenry.

“Overall, we were convinced that the reversal was necessary in order to give a boost to the efforts of the government at reducing the costs of local production, deepen domestic value chain addition and economic diversification.

“As an association representing the interests of manufacturers across various sectors, MAN believes that this decision will have a positive impact on the sector, enabling businesses to remain competitive and grow.

“We applaud the government for listening to the concerns of stakeholders and taking swift action to redress the issue.”

MAN, however, called for the conduct of an inclusive and independent assessment to ascertain the adequacy or inadequacy of the subsisting charges (7.0 per cent surcharge and 1.0 per cent CISS) and the possible implications of the introduction of a higher charge on the delicate inflation trend, the cost of living for about 230 million Nigerians, and the struggling manufacturing sector and the economy at large.

“We further recommend that the government should organise an inclusive stakeholders’ consultation to determine the appropriate level of charges that will guarantee the efficient performance of NCS; be in line with prevailing trends and quite importantly, promote increased productivity.

“We urge the federal government to continue implementing policies that promote industrialisation, reduce the cost of doing business, and encourage domestic production by eliminating various binding constraints that hamper manufacturing growth and economic development,” Ajayi-Kadir said.

He added that MAN remained committed to working collaboratively with the government to create conducive business environment that fosters sustainable economic growth and development.  

In a related development, AON, stated that the suspension was a clear demonstration of Tinubu’s commitment to creating a business-friendly environment, protecting critical sectors of the economy, and promoting sustainable growth.

The levy, the Association stated if implemented, would have had severe consequences for airlines in Nigeria, leading to higher operating costs, further straining an industry already contending with multiple economic challenges.

AON, in a statement, particularly lauds Edun for his exemplary leadership as a listening Minister who has shown deep patriotism and responsiveness by heeding the concerns of stakeholders.

According to the body, “His decision reflects a strong commitment to carrying out the mandate of the President with diligence, sensitivity, and fairness to all sectors of the economy.

“This bold and thoughtful intervention will go a long way in safeguarding the aviation sector, protecting jobs, reducing inflationary pressures, and ensuring that Nigeria remains competitive in the global business environment.

“AON reaffirms its commitment to working closely with the government to strengthen the aviation industry and contribute to the realisation of President Tinubu’s vision for economic growth and national development.”

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