CIoD asks FG to reconsider four per cent fob charge on imports — News — The Guardian Nigeria News – Nigeria and World News

•Says It Poses Risk To Industrialisation Agenda
The Chartered Institute of Directors (CIoD) Nigeria, has asked the Federal Government to reconsider its policy of imposing a four per cent charge on Free on Board (FoB) value of imports by the Nigeria Customs Service (NCS), stating that the policy poses significant risks to Nigeria’s industrialisation agenda and economic stability.

The group, therefore, urged the government to rather adopt measures that promote trade, foster industrial growth and enhance Nigeria’s global competitiveness.

The institute’s Director General/Chief Executive Officer, Bamidele Alimi, in a statement, on Friday, stated that thoughit has been temporarily suspended for further engagements and consultation with stakeholders, trends often show that government was usually “somehow rigid and unwilling to review its stands, so we are not so sure that anything would change.

He said while the policy is intended to boost government revenue, it threatens to stifle economic development and undermine the competitiveness of Nigerian businesses in a globalised market.

Alimi said the institute has critically examined the implications of the four per cent FoB charge, drawing on relevant national and international examples, hence its call for a reconsideration or reform of the policy to be in tandem with the government’s policy target of improving business environment and fostering a more conducive environment for economic growth.

The CIoD chief added that the policy would further increase the cost of doing business, stifle industrial development, increase inflationary pressures and risk trade diversion, thereby undermining Nigeria’s revenue generation efforts.

Making key recommendations, Alimi called for policy review, targeted support for local industries, strengthened trade facilitation and stakeholder engagement.
He stressed that the CIoD Nigeria believes that while revenue generation is critical, it should not come at the expense of economic growth and development, maintaining that the institute remains dedicated to advocating for policy change and engaging with key stakeholders with the aim of helping Nigeria to achieve its economic goals.

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