The recent tariff increases in Nigeria’s maritime sector have been attributed to the N14.26 trillion revenue targets imposed on various agencies by the National Assembly Joint Committee on Finance.
The Nigeria Customs Service (NCS) saw its revenue projection for 2025 increased from N6.5 trillion to N12 trillion, while the Nigerian Ports Authority (NPA) had its target raised from N997 billion to N1.75 trillion. Additionally, the Nigerian Maritime Administration and Safety Agency (NIMASA) was assigned a N560 billion revenue goal.
Following the announcement, affected agencies introduced new surcharges and revised tariffs to meet their financial obligations. The NCS implemented a 4% Free on Board (FoB) levy on importers and clearing agents as per the Nigeria Customs Service Act, 2023, while the NPA raised its tariff by 15%.
Stakeholders Raise Concerns Over Economic Impact
Industry stakeholders argue that these revenue targets could have severe economic consequences, including higher inflation, increased business closures, and deeper poverty.
The Nigeria Employers’ Consultative Association (NECA) warned that with Nigeria’s annual imports estimated at N71 trillion, the new levy would add an extra N2.84 trillion in costs for importers, significantly inflating production expenses. For industries reliant on imported raw materials, duty payments could rise by 80%, eroding competitiveness.
Otunba Frank Ogunojemite, President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), criticized the N12 trillion target for NCS, arguing that it would cripple businesses and burden ordinary citizens with inflated costs. He urged the National Assembly to focus on trade facilitation rather than aggressive revenue generation through high import duties.
Similarly, NECA Director-General Adewale-Smart Oyerinde described the 4% FoB levy as ill-timed and detrimental to businesses, exacerbating Nigeria’s economic struggles. He noted that businesses already face multiple taxes, unpredictable policies, and rising costs, and further financial pressure could increase inflation and threaten jobs.
Revenue Target Could Disrupt Trade and Investment
Eugene Nweke, Head of Research at the Sea Empowerment and Research Center (SEREC), labeled the N12 trillion target for NCS as overly ambitious, given current trade policy uncertainties, declining import/export activities, and unstable foreign exchange rates.
Nweke warned that aggressively pursuing the revenue goal could lead to increased scrutiny and harassment of importers and exporters, discouraging trade and investment. He stressed that revenue targets should be carefully considered based on economic realities, rather than being imposed arbitrarily.
Despite the challenges, the NCS generated N6.1 trillion in 2024, showing steady growth. However, Nweke emphasized the need for a balanced approach that prioritizes trade facilitation and enforcement over excessive revenue generation.
He called on the Coordinating Minister of Finance and Budget, who also chairs the Customs Board, to ensure that fiscal policies align with economic stability and public welfare.