Nigeria Customs exempts raw materials and spare parts from the 4% levy to boost local manufacturing and cut production costs nationwide.
In a major policy shift aimed at stimulating local production and reducing manufacturing costs, the Nigeria Customs Service (NCS) has announced the exemption of raw materials and spare parts from the 4% levy previously imposed on imports.
The decision, which took effect immediately, follows extensive consultations between the federal government, private sector stakeholders, and manufacturers who had repeatedly called for relief on import duties. According to NCS officials, this measure is designed to ease the financial burden on businesses, encourage industrial growth, and boost Nigeria’s competitiveness in the global market.
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Industry experts believe the exemption will lower the cost of production for manufacturers, help stabilize prices, and potentially lead to increased employment opportunities. By removing the levy, the government aims to support the local manufacturing sector, which has been under pressure from high import costs and foreign exchange challenges.
Manufacturers Association of Nigeria (MAN) has welcomed the announcement, describing it as a “timely intervention” that could help revive struggling industries. Stakeholders also noted that the exemption aligns with Nigeria’s broader economic diversification strategy, which seeks to reduce dependence on oil revenues and enhance industrial capacity.
Nigeria Customs Service reiterated its commitment to implementing transparent and efficient processes to ensure compliance and smooth import operations. Businesses importing raw materials and spare parts are advised to verify the new regulations and adjust their financial planning accordingly.
This move is expected to drive more investments into the manufacturing sector, improve product quality, and foster innovation across key industries including automotive, construction, and agriculture.
