LCCI urges FG to expand list of exemptions under 4% FOB levy
The Lagos Chamber of Commerce and Industry (LCCI) has called on the federal government of Nigeria to widen the scope of exempted products under the Customs’ four percent Free-on-Board (FOB) levy, following recent changes by the Nigeria Customs Service (NCS) that provide relief for certain sectors.
The initial announcement by Customs last month exempts manufacturers importing raw materials, machinery and spare parts under tariff chapters 98 and 99 from the levy.
On Thursday in Lagos, Gabriel Idahosa, the Chamber’s president, suggested the government expand the exemption list to cover additional key sectors such as agricultural inputs, renewable energy equipment and industrial machinery.
According to Idahosa, this would align the levy policy more effectively with trade-facilitation goals rather than penalising producers. He reiterated that while the government’s objective of revenue generation is legitimate, the current levy structure risks hollowing out Nigeria’s manufacturing competitiveness and undermining the diversification agenda.
Read also: Customs exempts manufacturers, government projects from 4% FOB levy
The waiver, Customs announced, also covers goods imported for government projects holding import duty exemption certificates, humanitarian and life-saving goods, airline spare parts and beneficiaries of the Presidential Initiative for unlocking the healthcare value chain.
The Chamber pointed to data showing that Nigeria imported N815 billion worth of animals in the first half of 2025, leading to a N763 billion trade deficit, justifying the urgent need for heavy investment in modern ranching, feed systems, cold-chain logistics and dairy infrastructure. The goal is to halve livestock imports within five years.
