New 4% Customs levy will hurt Nigerians, economy- ANLCA warns, demands suspension

The Association of Nigerian Licensed Customs Agents (ANLCA) has rejected the newly introduced 4% charge on the Free-on-Board (FOB) value of imports by the Nigeria Customs Service (NCS).

The association described the levy, intended to finance NCS operations, as a “rude shock” and demanded its immediate withdrawal.

In a statement signed by the National President Emenike Uwokeoji, ANLCA expressed dismay at the sudden introduction of the new tax.

Uwokeoji clarified that while he acknowledged the need for discussion and assessment of the policy, media reports suggesting his endorsement of the charge were inaccurate.

He criticized the NCS for failing to consult with key stakeholders before introducing the levy arguing that such unilateral decisions create unnecessary setbacks and policy summersaults, disrupting the import and export sectors and negatively impacting the Nigerian economy.

The association warned that the additional charge would ultimately be passed on to consumers, exacerbating the already high cost of living in the country.

The statement reads, “On the whole, ANLCA frowns at the sudden introduction and wish to reiterate its hitherto appeal that the Nigeria Customs Service, NCS, must not be made major revenue generating agency to the detriment of the agonising Nigerians and the rocketing inflation.

“Government should cultivate the habit of carrying ANLCA as a major player as well as all other sister associations and stakeholders along in matters such as this because of the adverse effect on the economic stability of the country and its operations in the import and export sectors of the economy.

“Let it be on record that the failure of the NCS and the Ministry of Finance to recognize our strategic role in the port economy has continued to create unnecessary setbacks and policy summersaults and the FG must take responsibility for whatever disruptions these arbitrary charges will have on the industry and economy.

“On behalf of our teeming members, principals, and the poor masses who no doubt will bear the burden of this additional tax, ANLCA wishes to state unequivocally its opposition to the 4% tax. It goes without saying that we demand its immediate withdrawal.

“To say that we were taken aback by the development at a time we and other stakeholders are still in discussion with the Federal Inland Revenue Service, FIRS, on the negative impact of multiple taxation on the economy and the urgent need to harmonise it is to say the least insensitive.

“While we will always strive to support the federal government in its quest to achieve purposeful and rational tax regime, it is our considered view that when the quests directly conflict with the buying power of the majority of ordinary Nigerians owing to the spate of galloping inflation that has so far defied measures advanced by our appointed economic managers/experts, caution should be exercised in churning out additional taxes.

“Let it be known that the import sector has been burdened by too many taxes already. Additional taxes not properly evaluated and reconciled with existing ones will merely subject the masses to even greater sufferings.

“The fact remains that the importers will finally transfer the additional cost burdens to Nigerians to recover their expenses.

“While ANLCA wishes to also state its readiness to accommodate the Nigeria Customs Act 2023 which ‘supports’ some of the emerging considerations, we make bold to state that the Act is far from perfect and suggest that the federal government should provide an enabling atmosphere for the Ease of Doing Business to thrive.

“This they can do by always carrying critical stakeholders along anytime it wishes to implement some sections of the NCSA 2023.”