Importers, Brokers Protest As Customs Hikes Clearing Fees Again, Warn of Soaring Prices and Rising Risk of Smuggling [VIDEO]

 

A sweeping change to Nigeria’s import clearing fees has ignited a storm of protests among freight brokers, clearing agents, and importers nationwide. The Nigeria Customs Service (NCS) recently unveiled a 4 percent Free-On-Board (FOB) levy, replacing existing charges and instantly escalating the cost of bringing goods into the country.

Businesses say they were blindsided. Several importers reported learning about the fee change only after goods had already arrived at ports, leaving no time to adjust finances or pricing. Vehicle importers and traders dealing in high-value goods appear to be the most affected, with some warning that clearing costs have now surged to unsustainable levels.

For a country already grappling with stubborn inflation, the move has been met with sharp criticism. Importers argue that the increased levy will ripple through the supply chain, pushing retail prices higher and placing more strain on households already struggling to afford basic items. Economists have long warned that cost-push inflation, driven by higher import expenses, could compound Nigeria’s fragile economic recovery.

Trade operators are voicing fears that the policy could stall cargo clearance entirely for certain shipments. Several industry insiders say some goods may remain stranded at Nigerian ports because clearing them has become financially impractical. Others are already exploring alternative routes through neighboring countries with more competitive duties. Such diversions could inadvertently fuel smuggling, a challenge that Nigeria has battled for decades.

Critics also point to timing as a major flaw in the rollout. Many businesses are still recovering from recent currency volatility, high lending rates, and increased operational expenses. For smaller importers, the extra levy could be the breaking point, forcing them to scale down operations or exit the market altogether.

Some industry groups have begun coordinated efforts to pressure authorities into reconsidering. They are urging the NCS to suspend the levy and engage stakeholders in proper dialogue to find a compromise that meets revenue needs without crippling trade. According to the Association of Nigerian Licensed Customs Agents, the abrupt implementation ignored the realities of market volatility and the operational challenges importers face.

A few minor concessions have been made by Customs in recent days, including allowing some import declarations to be resubmitted under previous rates. However, stakeholders say these measures are insufficient. They insist that without a broader review, the new charges will harm not only their businesses but the wider economy.

Customs officials maintain that the policy is part of efforts to boost government revenue and standardize tariff regimes. They argue that Nigeria’s import fee structure has lagged behind comparable economies, limiting the state’s ability to generate funds for infrastructure and public services. Yet, even among policymakers, there is quiet acknowledgment that higher tariffs could deter legitimate trade.

Port operators have noted a drop in clearance activity since the levy was announced. This slowdown, if prolonged, could affect port revenue, reduce the flow of goods into the market, and further constrain economic activity. The logistics sector, which depends heavily on the speed and efficiency of cargo turnover, also faces potential losses from delays and reduced shipment volumes.

For everyday Nigerians, the impact will likely be felt in rising prices for imported goods, from automobiles to household appliances. Retailers have already begun adjusting prices to reflect the higher clearing costs, and consumers can expect further increases in the coming weeks.

Observers say the dispute highlights a broader challenge for Nigeria: balancing the urgent need for government revenue with policies that promote economic growth and trade facilitation. While the NCS appears determined to enforce the levy, pressure from organized trade groups could force a policy rethink.

The coming weeks will reveal whether authorities are prepared to ease the new charges or whether the stand-off will deepen, possibly leading to prolonged port gridlock and further price escalation. For now, both importers and consumers are bracing for the economic ripple effects of a decision that could reshape the country’s import landscape.