Lagos, Nigeria — The Manufacturers Association of Nigeria (MAN) has commended the suspension of the proposed 4 percent import levy, saying the decision has spared the country from a sharp increase in the cost of goods.
In a statement released on Tuesday, MAN noted that the levy, if implemented, would have raised production costs, triggered inflation, and worsened the operating environment for manufacturers already grappling with high energy expenses and foreign exchange challenges.
The association explained that the suspension provided critical relief for businesses and consumers alike, as import-dependent industries would have faced higher costs that would inevitably be passed down to end users.
“By halting the implementation of this levy, the government has averted a situation that could have led to widespread price hikes across essential commodities,” MAN stated. “This decision protects both industrial competitiveness and consumer purchasing power at a difficult time for the economy.”
The association further urged the government to prioritize policies that encourage local production rather than impose additional financial burdens on manufacturers. It highlighted that the manufacturing sector, which contributes significantly to Nigeria’s GDP and employment, requires supportive measures to remain sustainable.
Economic analysts also welcomed the suspension, noting that with inflation already at record highs, the introduction of a fresh levy on imports would have compounded the strain on households and businesses.
While MAN praised the move, it called for long-term reforms in customs administration, infrastructure, and access to affordable credit to strengthen the manufacturing ecosystem.
The federal government had earlier proposed the 4 percent levy as part of broader revenue-generation measures. However, following consultations with stakeholders, the policy was put on hold.
Industry watchers say the suspension signals a willingness by the government to balance revenue needs with the realities faced by businesses and consumers, an approach they believe is vital to sustaining Nigeria’s fragile economic recovery.
