The Manufacturers Association of Nigeria has cautioned that Nigerians could soon see higher prices for goods after the Federal Government reinstated a four per cent Free-on-Board charge on imports.

In a statement signed by its Director General, Segun Ajayi-Kadir, MAN said the policy, effective August 4, 2025, is likely to worsen the operating environment for manufacturers, increase production costs, and drive inflation.

“In fact, costs associated with the four per cent FOB charge will generally increase the import cost of raw materials not available locally above the N6.6 trillion recorded in 2024.

“Clearly the cost will be passed on to consumers and this will fuel inflation, which already stands at 21.88 per cent as at July 2025, and undermine the prevailing struggle with high inflation,” MAN stated.

MAN warned that these additional costs will inevitably be transferred to consumers, further driving inflation, which already stood at 21.88 per cent in July 2025.

“Clearly, this will exacerbate the prevailing struggle with high inflation,” the association noted.

It highlighted that manufacturers are already struggling under challenging macroeconomic conditions, including exchange rates exceeding N1,540/$, alternative energy costs surpassing N1.1 trillion, and interest rates averaging over 35 per cent.

The group also raised concerns about Nigeria’s regional competitiveness, noting that neighboring economies like Ghana, Côte d’Ivoire, and Senegal charge inspection or collection fees of just 0.5%–1% FOB, with higher levies applied only to luxury imports.

MAN argued that the uniform four per cent levy in Nigeria could encourage cargo diversion to neighboring ports, boost informal cross-border sourcing, and incentivize under-declaration of imports.

In addition to the levy, the group criticized ongoing technical failures on the Nigeria Customs Service B’Odogwu platform, which have delayed cargo clearance, increased demurrage costs for importers, and caused stock shortages in factories.