LCCI Demands Suspension Of 4% Customs Processing Charge Implementation

… Says Additional Charges Will Disrupt Business Operations, Increase Transaction Costs

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government and the Nigeria Customs Service (NCS) to suspend the abrupt implementation of the newly introduced four per cent Customs Processing Charge (CPC).

The charge, which took effect on Tuesday, February 4, has sparked concerns within the business community due to its sudden enforcement without prior consultation.

In a statement issued by the Chamber, Director General of LCCI, Dr. Chinyere Almona expressed concern over the lack of stakeholder engagement before the introduction of the charge.

While acknowledging that the CPC is backed by the Nigeria Customs Service Act 2023, specifically under Section 18, LCCI criticized the failure to adhere to Section 23 of the same Act, which mandates public notification and consultations before the introduction of new levies.

Almona stated, “The business community, including importers, exporters, freight forwarders, and clearing agents, was not given prior notice or adequate time to prepare for this financial burden.

“Such an approach disrupts business operations, increases transaction costs, and creates uncertainty in the trading environment.”

The Chamber further noted that Nigerian businesses are already grappling with multiple financial challenges, including high-interest rates, inflation-driven operational costs, and a scarcity of foreign exchange for critical imports.

Additional levies such as the CPC, LCCI warned, could exacerbate the difficult business climate and discourage investments.

LCCI also highlighted that despite the Nigeria Customs Service surpassing its 2024 revenue target by over a trillion Naira, there remains an urgent need for investment in port infrastructure, process automation, and trade facilitation to enhance efficiency rather than imposing additional financial burdens on businesses.

The Chamber cautioned that the sudden implementation of the charge could lead to congestion at ports, as traders and clearing agents may delay shipments in response to increased costs.

This, in turn, could disrupt supply chains, negatively impact revenue generation, and further erode investor confidence in Nigeria’s economic environment.

LCCI called on the government to prioritize trade facilitation, reduce bureaucratic bottlenecks, and adopt international best practices by ensuring that trade-related policies are implemented transparently and inclusively. The Chamber reaffirmed its readiness to collaborate with relevant stakeholders to ensure that policies support economic growth rather than hinder it.

“We urge the Nigeria Customs Service to reconsider this abrupt implementation and engage stakeholders in meaningful dialogue to foster a more business-friendly environment,” Dr. Almona concluded.

LCCI Demands Suspension Of 4% Customs Processing Charge Implementation is first published on The Whistler Newspaper