The Nigeria Customs Service’s four percent Free-on-Board (FOB) collection recently introduced, has increased the cost of importation into the country by a whooping 186% for some goods, according to statistics shown to journalists.

An importer provided a document, revealing a breakdown of charges for machinery valued at $42,000. Using an exchange rate of N1,585.65 to the dollar, the consignment had a Free-on-Board value of N66.6 million. Adding freight of $5,000 (N7.9 million) and insurance of $635 (N1 million) brought the total cost, Insurance and Freight (CIF) value to N75.5 million.

Before now, customs collected a one percent Comprehensive Inspection Supervision (CIS) fee on the FOB value, totalling N665,974, with a 5 percent import duty on CIF at N3.77 million.

A 7 percent surcharge on the duty added N264,366, while the ECOWAS levy contributed another N377,665. In total, the importer paid about N5.08 million to clear the cargo.

Currently, the CIS fee and 7% surcharges have been eliminated, in their place however, is the imposition of a blanket four per cent FOB charge.

In the reviewed case, that amounted to N2.66 million. With duty and the ECOWAS levy unchanged, the total payable rose to N6.82 million. The difference of N1.73 million represents a 186.34 percent increase in charges.

Industrialists who depend on foreign machinery and equipment, have higher costs to contend with, increasing production costs, and meaning more expenses on the part of the consumer.

Stakeholders have already warned that the change risks discouraging imports and placing an additional burden on a fragile economy.

“Nobody is saying Customs should not have their own earning. The understanding we all had before was the one percent CISS and 7 percent duty surcharge was going to Customs. I don’t think anybody is objecting to that. What we all are objecting to is further increasing the burden,” George Coleman, an importer and international trader in wires and cables told a media outfit.