Saraki Faults 4% Customs Administration Charge

Former Senate President, Bukola Saraki, has criticized the introduction of a 4% customs administration charge on the Free On Board (FOB) value of imports, describing it as ill-timed and burdensome on Nigerians.

In a statement posted on his Facebook page, Saraki questioned the rationale behind the new charge, which is expected to generate an additional N2.84 trillion annually for the Nigeria Customs Service (NCS).

“With our annual imports estimated at N71 trillion, the new 4% customs administration charge on FOB value will come to N2.84 trillion. Does this mean that the Customs Service requires an additional N2.84 trillion annually to do its job?” Saraki asked.

He noted that the NCS already has a budget and receives an incentive percentage on total customs duties collected, wondering why an additional charge was necessary.

Saraki also expressed concern that the new charge would be passed on to consumers, further straining the budgets of millions of struggling households.

“Importers will inevitably pass these costs on to consumers, further straining the budgets of millions of struggling households,” he said.

The former Senate President also criticized the application of the charge across all imports, regardless of their classification.

“This new fee of 4% is not even restricted to luxury goods but across all imports, so even for industries that import their raw materials whose duties are only 5%, the customs agency will now charge importers an extra 80% of the duty amount as administrative fees!” he exclaimed.

Saraki urged the government to reconsider the policy, citing its potential to undermine efforts to promote economic growth and development.

“How can this make sense or support the government’s policy of promoting the ease of doing business? The government must urgently reconsider this policy and put it on hold immediately. Especially now with what Nigerians are going through,” he said.