LCCI, NECA Seek Immediate End to 4% FOB Levy

Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI) and the Nigeria Employers’ Consultative Association (NECA) in separate statements yesterday have called on the Nigeria Customs Service (NCS) to implement the suspension of the controversial 4.0 per cent Free-on-Board (FOB) Levy as directed by the Minister of Finance and Controlling Minister of the Economy, Mr. Wale Edu, without further delay.

The LCCI made its call in a press statement titled, “End The 4% FOB Levy Now: LCCI Urges Swift Action From NCS,” in which it expressed concern that the NCS has continued to enforce the 4.0 per cent FOB levy despite the Honourable Minister of Finance’s formal directive suspending it.

Meanwhile, the NCS could not confirm that it has commenced the implementation of the suspension of the FOB Levy when THISDAY sort the comments of its public relations officer, who pleaded for time to get update on the matter.

The statement, which was signed by the Director General of LCCI, Dr. Chinyere Almona, said that the NCS has cited Section 18(1)(a) of the NCS Act 2023 as the basis for the levy.

Almona said: “While we respect the legislative process, the Minister of Finance is the constitutionally empowered authority for fiscal policy.  (Therefore) a duly issued ministerial suspension should take immediate effect unless overturned by the National Assembly or a competent court.”

She argued that “the continued collection of this levy raises import costs, erodes competitiveness, and undermines investor confidence,” adding that the “LCCI, therefore, calls on the NCS to recalibrate its systems without delay to reflect the ministerial directive and to issue a public notice confirming compliance.  We also urge the Ministry of Finance and the National Assembly to engage promptly to remove any legal ambiguity.”

The LCCI said that the “Nigeria’s business community needs policy clarity and institutional coordination to sustain trade, jobs, and economic growth.”  

Speaking in the same vein, the Director General NECA, Mr. Adewale-Smatt Oyerinde, told THISDAY that NECA appreciated the intervention of the Honourable Minister of Finance and Coordinating Minister of the Economy, whose directive as regards the suspension of the 4.0 per cent FOB aligned with the overall economic objectives of the current administration.

Adewale said: “It is, therefore, surprising that the NCS that should facilitate trade and enterprise competitiveness will treat the directive with levity.”

He said that while the FOB is the law, “It is important that laws align with the overall economic objectives of the nation.  When, for whatever reason provisions of the law will not foster economic growth, the government should not be shy to review, reverse or amend such law. It is our view that the levy will hurt Nigerians that the government is trying to rescue from the scourge of the multidimensional challenges that they currently face.”

Union Bank Successfully Completes N6.3bn Series 2 Bond Issue

Kayode Tokede

Union Bank of Nigeria has completed the full redemption of its Series 2 15.75% Bond Issue with the payment of both principal and coupon totalling N6.3bllion September 3, 2025.

This payment fulfils the Bank’s obligations to bondholders in accordance with the regulations set by the Securities and Exchange Commission (SEC).

The Series 2 Bond was issued under the Bank’s N100 billion Debt Issuance Programme and was fully subscribed, with the final coupon payment also settled on September 3, 2025.

This completion represents a significant achievement for Union Bank, particularly following the recent merger with Titan Trust earlier in early September.

The timely execution of coupon payments and the full redemption of the bond significantly enhance investor confidence in the Bank’s governance and financial stability, setting a positive precedent for future investment opportunities.

The Bank’s Head of Strategy and Planning, Mr. Tosin Ibikunle in a statement said, “The successful conclusion of the Bond Issue repayment process signals Union Bank’s commitment to meeting all obligations to our financial stakeholders. This accomplishment not only enhances investor confidence but also underscores the Bank’s robust financial position as we continue to innovate and support Nigeria’s growth.”

Union Bank’s compliance with SEC guidelines, alongside collaborations with ARM Trustees and UTL Trustees, reflects its commitment to regulatory excellence and stakeholder engagement, reinforcing investor trust in its financial integrity and commitment to sustainable growth.