Nigerian Importers And Fleet Brokers Stage Protests Over Customs Fee Hike.
Importers and fleet brokers across Nigeria have taken to the streets in protest following the Nigeria Customs Service’s (NCS) decision to increase cargo clearing fees, a move that has sparked widespread discontent among stakeholders in the nation’s trade and logistics sectors. The announcement of the fee hike, which came into effect earlier this month, has been met with fierce opposition, with many arguing it will exacerbate the economic challenges already facing the country.
The NCS introduced a new four per cent Free-on-Board (FOB) levy on all imports, replacing the previous seven per cent customs collection charge and the one per cent Comprehensive Import Supervision Scheme (CISS) fee. While the NCS claims the new levy streamlines charges and aligns with efforts to modernise customs operations through the B’Odogwu Clearance System, importers and brokers argue it represents a net increase in costs, particularly for vehicle imports and high-volume goods. The levy, calculated based on the value of imported goods and transportation costs up to the port of loading, is seen by many as a burden in an already strained economic climate marked by currency volatility and port inefficiencies.
Dr Eugene Nweke, Secretary of the Customs Consultative Committee, expressed concerns about the economic implications of the new policy. He warned that the additional costs could stifle trade, raise consumer prices, and undermine the competitiveness of local businesses. “This levy, while presented as a modernisation effort, adds a significant financial strain on importers,” Nweke stated. “In a market grappling with high duty rates and inefficiencies, this could be a blow to trade and industry.”
Freight forwarders, particularly those handling vehicle imports, have been vocal in their criticism. Mr Taiwo Fatomilola, National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), described the levy as a mere rebranding of existing fees with little financial relief for importers. “It’s substitution by elimination,” Fatomilola remarked. “The new levy is charged directly on import duties, so the burden remains the same, if not worse.”
The protests, which have gained traction in major port cities like Lagos and Port Harcourt, reflect growing frustration with the rising cost of importing goods into Nigeria. Clinton Ikechukwu Okoro, Chief Executive Officer of Globe Joy Investment Nigeria Limited, highlighted the broader impact on consumers. “Importers will pass these costs onto customers, which means higher prices for goods across the board,” he said. “This policy will worsen the economic hardship faced by ordinary Nigerians.”
Adding to the tension, the NCS has issued a 21-day ultimatum to 223 companies under the Temporary Admission Permits (TAP) scheme to regularise their importation status or face penalties, including bond invocation. The TAP scheme allows temporary imports without duties, provided goods are re-exported or converted for domestic use within a set period. The simultaneous enforcement of the FOB levy and stricter TAP regulations has raised fears of further disruptions in the trade sector.
However, in response to the backlash, the NCS announced a temporary suspension of the four per cent FOB levy on 24 February 2025, urging importers and agents to refile their entries to avoid delays in cargo clearance. The agency stated that the decision was made to ensure clarity and maintain operational consistency, with customs commands nationwide instructed to assist stakeholders during the transition. Despite this, many protesters remain sceptical, viewing the suspension as a temporary measure that fails to address the underlying issues of rising costs and inefficiencies.
The fee hike comes at a time when Nigeria’s import sector is already grappling with challenges, including a significant increase in the exchange rate for import duty calculations, which rose from N952 to N1,356 per dollar, further inflating costs. Importers and brokers have warned that the cumulative effect of these policies could lead to reduced cargo volumes, higher consumer prices, and a potential shift towards importing through neighbouring countries like Benin and Togo, where costs are reportedly lower.
As protests continue, stakeholders are calling for broader consultations between the NCS and the business community to devise policies that support trade without placing undue burdens on importers. For now, the standoff between the NCS and the trade sector underscores the delicate balance between revenue generation and economic stability in Nigeria’s import-dependent economy.
