ANLCA Rejects 4% FOB Levy, Demands Withdrawal

…Says Masses Purchasing Power Already Stretched Beyond Limit

BY FUNMI ALUKO

The Association of Nigeria Licensed Customs Agents (ANLCA) late yesterday evening rejected the newly introduced 4% Free-on-Board (FOB) levy introduced by the Federal Ministry of Finance on Tuesday, February 4, 2025 to shore up the Nigeria Customs Service (NCS) revenue collection.

A release signed by the National President of the association, Mr. Emenike Kingsley Nwokeoji condemned the suddenness with which the levy was introduced while frowning at the negative implication the new tax would have on the citizens.

Nwokeoji who also complained about subtle neglect of the association, its members, sister associations and other stakeholders by the federal government urged the political leadership and its officials to purge themselves of what he described as official arrogance and to henceforth put the nation on notice in respect of its numerous taxations; and allow for dialogue and sensitization.

The ANLCA leader also challenge the maritime media to be more objective and alive to its responsibility in holding government and its leaders accountable and for good governance; and to cut down on sensationalism and to do more of critique in matters affecting the economy as part of developmental journalism.

He said while the leadership of the association is yet to meet to discuss the development, he expressed concern about the suddenness of tax policy approach, noting that the National Executive Committee (N ECOM) of the association will subject the proposed levy to proper evaluation and announce an update on its position.

The release titled ‘Association of Nigeria Licensed Customs Agents Rejects The Introduction Of 4% Financing NCS Operation Tax’ reads:

“The sudden introduction of an additional tax of 4% called “financing NCS operations” not only caught the leadership of ANLCA and its members unawares but came as a rude shock.

“While we were still carrying out informal consultations amongst ourselves coupled with the need to properly study the situation, the maritime media has been awash with reports of a cacophony of opinions and posturing which erroneously quoted the person of the National President, Emenike Nwokeoji as conferring legitimacy on the controversial new tax introduction.

“It hurts that the media in its haste to go to press has unwittingly attributed to me a twisted verdict that is at variance with my professional conviction and leadership disposition as a team player. l only stated that as a responsible leader and team player, the NECOM will be meeting over the development soonest to have a broad based introspection and assessment of the new policy.”

He continues: “On the whole however, ANLCA frowns at the sudden introduction and wish to reiterate it’s hitherto appeal that the Nigeria Customs Service, NCS, must not be made major revenue generating agency to the detriment of agonising Nigerians under a sky rocketing inflation.

“Government should cultivate the habit of carrying along ANLCA as a major player as well as all other sister associations and stakeholders in matters such as this, because of the adverse effect on the stability of the country’s economy and its operations in the import and export sector.”

Concerned about the ripple effects of the present taxation on the economy, Nwokeoji demanded the immediate withdrawal of the 4% FOB levy, to pave the way for dialogue in the interest of stability and peace.

“Let it be on record that the failure of the NCS and the Ministry of Finance to recognize our strategic role in the port economy has continued to create unnecessary setbacks and policy summersaults and the FG must take responsibility for whatever disruptions these arbitrary charges will have on the industry and economy.

“On behalf of our teeming members, principals, and the poor masses who no doubt will bear the burden of this additional tax, ANLCA wishes to state unequivocally its opposition to the 4% tax. It goes without saying that we demand its immediate withdrawal.

“To say that we were taken aback by the development at a time we and other stakeholders are still in discussion with the Federal Inland Revenue Service, FIRS, on the negative impact of multiple taxation on the economy and the urgent need to harmonise it is to say the least insensitive.”

While expressing ANLCA’s readiness to continue to partner with the federal government, Nwokeoji said allowing this tax to run as envisaged by the federal government would amount to stretching the prevailing hardship for ordinary Nigerians.

“While we will always strive to support the federal government in its quests to achieve purposeful and rational tax regime, it is our considered view that when the quests directly conflict with the buying power of the majority of ordinary Nigerians owing to the spate of galloping inflation that has so far defied solutions advanced by our appointed economic managers/experts, caution should be exercised in churning out additional taxes.

“Let it be known that the import sector has been burdened by too many taxes already. Additional taxes not properly evaluated and reconciled with existing ones will merely subject the masses to even greater sufferings. The fact remains that the importers will finally transfer the additional cost burdens to Nigerians to recover their expenses.”

Commenting on the Customs Act 2023, the ANLCA President said despite having very unique features, there is need to review and rework the Act to fit with the collective interest of the country.

“While ANLCA wishes to also state its readiness to accommodate the Nigeria Customs Act 2023 which ‘supports’ some of the emerging considerations, we make bold to state that the Act is far from perfect and suggest that the federal government should provide an enabling atmosphere for the Ease of Doing Business to thrive. This they can do by always carrying critical stakeholders along anytime it wishes to implement some sections of the NCSA 2023.

“In conclusion, l wish to also document our humble appeal to the federal government to suspend the tax to allow for an exhaustive stakeholders engagement on the sudden imposed additional charge — “Financing NCS Operations”- tax for a comprehensive input”, adding:

“This release is without prejudice to any further observation we may feel incline to make, while we look forward earnestly to continued partnership with the federal government on the way forward; and indeed, in other areas of collaboration essential to grow the economy.”

it will be recalled that the NCS earlier yesterday announced a sensitization programme for stakeholders in respect of the troubled tax even as it assured all stakeholders that they matter and that therir contributions to the growth of the economy is not taken for granted.