Financial experts have raised alarm that the implementation of the 4 per cent Free-On-Board (FOB) Levy on imports would exacerbate inflation in the country.

The News Agency of Nigeria (NAN) report that the Nigeria Customs Service (NCS) on Feb. 5 announced its introduction of the FOB levy on imports.

According to Abdullahi Maiwada, the spokesman of the service, the introduction of the levy was in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.

“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4 per cent charge on the Free On-Board (FOB) value of imports.

“The FOB charge, which is calculated based on the value of imported goods, including the cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the service.”

However, a former Chairman, Manufacturers Association of Nigeria (MAN), Ogun Chapter, Dr Wale Adegbite and Evans Osabuohien, a Professor of Economics, said that the levy would worsen the nation’s inflation rate.

In separate interviews with the News Agency of Nigeria (NAN) on Monday in Ota, Ogun, Adegbite and Osabuohien of the Department of Economics, Covenant University, said that the policy would negatively impact the economy.

The former MAN chairman said that the 4 per cent levy by the NCS “is a disaster and will worsen an already bad situation with multiple devastating effect on the economy.

” Why would the government inflict more hardship on the population as this new policy will certainly lead to more price increase, thus further increasing the country’s inflation rate.

“In addition, the masses will suffer more because of the impending price increase without any corresponding increase in income.”

Also, Osabuohien said that though the new FOB policy by the NCS was meant to generate more revenue for the federal government, but it would negatively impact on the economy.

He said that the NCS action would increase the cost of living of households.

The economist explained further that the development would increase the cost of operations of Small Medium Enterprises (SMEs), especially those companies that depend on imported raw materials for their production.

“This additional cost to be incurred through the 4 per cent increase in FOB would be transferred to the consumers and it would automatically trigger increase in the nation’s inflation rate,” Osabuohien said.

U.S. President Donald Trump plans to impose tariffs of 25 per cent on steel and aluminium imports into the United States, he said on Sunday.

“Any steel coming to the United States is going to have them, 25 per cent tariff,” Trump said, according to journalists travelling with the president. When questioned about tariffs on aluminium imports, Trump replied, “25 Per cent for both.”

Trump also confirmed his plan to announce further reciprocal tariffs in the coming week.

He spoke of an announcement on Tuesday or Wednesday.

“Very simply, if they charge us, we charge them, Trump told reporters, adding that the tariffs would go into effect almost immediately.”

U.S. tariffs of 10 per cent on Chinese goods took effect from Feb. 4.

The planned tariffs of 25 per cent on Mexico and Canada were suspended for an initial period of 30 days following promises from the two countries to increase border security measures.

Trump won November’s presidential election promising to slap high tariffs on foreign goods to reduce U.S. trade deficits.

He implemented a number of duties during his first term from 2017 to 2021.

The Supreme Court on Monday dismissed the suit by Rivers State Governor, Siminalayi Fubara seeking to remove 27 members of the State House of Assembly on ground of their alleged defection from the People’s Democratic Party (PDP) to the All Progressives Congress (APC).

Justice Uwani Aba-Aji delivered the judgment following the dramatic withdrawal of the appeal by Fubara through his lead counsel, Yusuf Ali, SAN.

Fubara in the notice for withdrawal of the case simply informed a three-man panel of justices of the court that events have overtaken his suit and that the lawmakers are their friends.

The request for the withdrawal of the contentious suit was not opposed by the Rivers States House of Assembly and its Speaker, Martin Amaewhule who were represented by Chief Wole Olanipekun, SAN.

Olanipekun, however, demanded for outright dismissal of the suit on the premise that parties have filed and exchanged their brief of arguments and thus, joined issues with each other.

He argued that the proper order to be made in the circumstances is the dismissal of the case which the court agreed with.

Following no objections from parties, the apex court dismissed it and awarded two million each against Fubara to be paid to the House of Assembly and Amaewhule.

Addressing newsmen shortly after the dismissal of the suit, Ken Njemanze, SAN said that the coast has been finally cleared for the 27 lawmakers to take over the House of Assembly fully.

Njemanze said that all steps taken by Fubara in the absence of the 27 lawmakers, including presentation of the 2024 and 2025 budgets to only four lawmakers among others, have become a nullity.

The Court of Appeal had on October 10, 2024 dismissed Fubara’s an appeal on the same matter.

The Federal High Court in Abuja

presided over by Justice James Omotosho on January 22, 2024, also nullified the passage of Rivers State’s N800 billion 2024 budget by four members of the House of Assembly.

The court had described the bill’s passage by the four lawmakers, led by Hon. Ehie Edison, as an aberration and illegality.

It consequently ordered Fubara to re-present the budget to the Martins Amaewhule-led Assembly.

The suit filed by the 27 members of the Assembly loyal to former governor of the state and Federal Capital Territory (FCT) Minister, Nyesom Wike filed the suit which got the blessings of the lower court.

Listed as defendants of the suit marked FHC/ABJ/CS/1613/2023 are the National Assembly, the Senate, the House of Representatives, and the Clerk to the National Assembly.

Others include Governor Fubara, Hon. Edison, the Rivers State Civil Service Commission, and the Inspector-General of Police(IGP).

Justice Omotosho had while ruling on an ex-parte motion by the 27 legislators issued an interim order restraining Fubara and his agents from obstructing the pro-Wike legislators from carrying out their constitutional duties.

He also restrained the governor from removing/redeploying the Clerk of the Assembly and withholding funds meant for the Assembly, pending the determination of the substantive suit.

The governor had also prevented the pro-Wike legislators from sitting by demolishing a part of the Assembly complex and withholding funds for legislative functions.

Delivering judgment, Justice Omotosho had held that the four lawmakers’ passage of the budget and other actions taken while the 30 November 2023 order subsisted amounted to a nullity.

He said the governor acted like a tyrant in the manner the Assembly complex was partially demolished and funds for legislative activities withheld.

The judge had issued an order restraining Fubara from frustrating the Assembly-led by Hon. Amaewhule from sitting or interfering in its activities.

He also described as unlawful, Governor Fubara’s redeployment of the Clerk and Deputy Clerk out of the Assembly, stating that the action amounted to an affront on separation of power.

The judge ordered the Clerk and the Deputy Clerk to resume office immediately and unhindered.

Apart from also asking Fubara to promptly release all monies standing to the credit of the Assembly, he also ordered the Inspector General of Police (IGP) to immediately deploy his operatives to the Assembly complex.

The judge had also barred the National Assembly from taking over the Assembly or accepting or treating any request by Governor Fubara on any matter affecting the Legislature.