Nigerian Government Proposes Scrapping 7% Import Surcharge To Ease Trade Costs.
The Federal Government of Nigeria, through the Nigeria Customs Service (NCS), has announced plans to consider eliminating the seven percent surcharge currently applied to all imports, a move aimed at reducing the cost of doing business and boosting trade competitiveness. The proposal was revealed by the Comptroller-General of Customs, Adewale Adeniyi, during a town hall meeting with stakeholders on the Bodogwu clearance system, held in Lagos on Monday, 21 July 2025. The initiative, which is under legislative review, has been hailed as a significant step towards alleviating financial burdens on businesses and consumers alike.
Adeniyi explained that removing the surcharge would lower the overall import duties on Nigerian-bound cargo, streamlining operations at the nation’s ports and making goods more affordable. “The Bodogwu system is designed to reduce operational costs at our ports,” he stated. “With the right technology and stakeholder cooperation, coupled with this proposed duty reduction, we can achieve meaningful progress in trade facilitation.” The surcharge, which has been a longstanding additional levy on top of existing import duties, has long been a point of contention for businesses, particularly the Manufacturers Association of Nigeria (MAN), which had previously protested additional levies like the now-suspended four percent Free on Board (FOB) charge.
The proposed reduction comes as part of broader efforts to modernise Nigeria’s customs processes and align with the Economic Community of West African States (ECOWAS) Common External Tariff (CET) framework. Import duties in Nigeria typically range from five to 35 percent, with additional levies such as the seven percent port surcharge and a 7.5 percent value-added tax (VAT) applied to the Cost, Insurance, and Freight (CIF) value of goods. Scrapping the surcharge is expected to lower the effective duty rates, particularly for high-value items, and encourage greater use of Nigerian ports, which have faced competition from neighbouring countries due to high clearance costs.
Stakeholders, including importers and manufacturers, have welcomed the announcement, expressing hope that it will reduce the cost of essential goods and stimulate economic activity. The move follows earlier concessions, such as the duty waiver on food items like rice, maize, and wheat, introduced in July 2024 to address food security concerns. Adeniyi noted that the NCS is committed to balancing revenue generation with trade facilitation, ensuring that policies support both economic growth and consumer welfare.
The proposal is currently under review by the National Assembly, with stakeholders optimistic about its swift approval. If implemented, the surcharge removal could mark a turning point for Nigeria’s trade environment, fostering a more competitive market and easing the financial strain on businesses navigating the country’s challenging economic landscape.
