‘Timely action’ — NECA commends FG for suspending 4% FOB tax

The Nigeria Employers’ Consultative Association (NECA) has commended the federal government for suspending the 4 percent free on board (FOB) collected by the Nigeria Customs Service (NCS).

Speaking in Lagos, Adewale-Smatt Oyerinde, director-general (DG) of NECA, said the move demonstrates the government’s commitment to supporting the organised private sector and driving economic growth.

He noted that the withdrawal of the proposed five percent telecom tax, alongside the customs charge removal, affirms the administration’s determination to promote enterprise sustainability, competitiveness, and job creation at scale.

“We commend the minister of finance and coordinating minister of the economy for the demonstration of government’s commitment to grow the economy through the development of the organized private sector,” Oyerinde said.

“This action, including the withdrawal of the proposed 5 percent telecom tax further affirmed the current administration’s determination not only to promote enterprise sustainability and competitiveness, but also determination to enable job creation at scale.

“While we commend the government on this timely action, we urge the immediate implementation of the directive by the Nigeria Customs Service.”

The DG urged other government agencies to align their policies with the renewed hope agenda by reversing “unnecessary” charges and levies that weigh down businesses and undermine economic growth.

Oyerinde expressed concern over the continued imposition of financial reporting levies despite a presidential directive suspending them.

“Notwithstanding the presidential directives on the suspension of the FRC Levies, the Financial Reporting Council of Nigeria continues to disobey the unambiguous directive of the President. This is not only worrisome but also unacceptable,” he said.

The NECA boss reiterated that organised businesses will remain central to Nigeria’s economic progress by attracting investments, stimulating trade, creating jobs, and offering sound economic recommendations to government at all levels.

On September 15, the federal government suspended the newly introduced FOB levy collected by the NCS on imported goods with immediate effect.