LCCI Urges Expanded 4% FOB Levy Exemptions to Boost Agricultural Exports

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to broaden the scope of the 4% Free on Board (FOB) levy exemptions to cover a wider range of agricultural products and exporters. The Chamber said such an expansion would not only enhance the competitiveness of Nigeria’s agricultural sector in the global market but also strengthen the country’s non-oil revenue base and support food security.

In a statement issued on Tuesday by its Director-General, Dr. Chinyere Almona, the LCCI emphasised that the existing exemptions under the levy were too limited, leaving many genuine agricultural exporters struggling under the weight of multiple taxes and regulatory charges. She noted that widening the exemption list would encourage more private sector players to invest in agribusiness and help reduce Nigeria’s dependence on crude oil exports.

“The 4% FOB levy on exports, though intended to generate revenue, has become a significant burden for many exporters, particularly in the agricultural value chain,” Almona said. “While we acknowledge the government’s need for revenue, we urge policymakers to consider the long-term benefits of a more competitive export environment that can yield greater returns through increased volumes and diversification.”

The Chamber pointed out that agriculture remains one of Nigeria’s strongest comparative advantages, with vast potential to drive inclusive growth, employment, and foreign exchange earnings. However, it lamented that excessive taxes, levies, and poor infrastructure continue to hinder the full exploitation of this potential.

According to the LCCI, broadening the FOB levy exemption to include more agricultural commodities—such as processed cocoa, palm oil derivatives, sesame seeds, and cashew products—would stimulate value addition, promote exports, and attract investments into the sector. The organisation further urged the government to ensure that smallholder farmers and agro-processing enterprises benefit directly from any policy adjustments.

Almona also called for stronger coordination between the Ministry of Finance, the Nigerian Export Promotion Council (NEPC), and the Nigeria Customs Service (NCS) to ensure seamless implementation of the exemptions. “Policy consistency and clarity are essential. Exporters need a predictable environment that allows them to plan long-term investments,” she added.

Industry experts supported the LCCI’s position, describing it as a timely intervention that aligns with the government’s diversification agenda. Agricultural economist Dr. Tunde Ogunleye noted that Nigeria’s agricultural exports have grown in recent years but still face stiff competition from neighbouring countries with more favourable trade policies.

“In Ghana and Côte d’Ivoire, for example, exporters of cocoa and other cash crops enjoy several tax rebates and infrastructure support,” Ogunleye said. “Nigeria must take similar steps if it wants to maintain relevance in the global agricultural export market. Expanding the 4% FOB levy exemption would be a practical step toward achieving that goal.”

Exporters have long complained about the multiple charges imposed at Nigerian ports, including the FOB levy, port handling fees, and inspection costs, which cumulatively erode profit margins. Many small-scale exporters have reportedly suspended operations due to the high cost of compliance, reducing the overall volume of non-oil exports from the country.

The LCCI also urged the government to review its broader trade and fiscal policies to align with the objectives of the African Continental Free Trade Area (AfCFTA). The Chamber argued that competitive export pricing and cost efficiency would determine Nigeria’s ability to benefit from intra-African trade opportunities.

“AfCFTA presents a chance for Nigeria to become a leading agricultural exporter in Africa,” Almona stated. “However, this can only be achieved if our exporters are not weighed down by excessive levies and administrative bottlenecks.”

The call for expanded exemptions comes amid ongoing fiscal reforms and government efforts to strengthen non-oil revenue. The Federal Government recently reiterated its commitment to diversifying exports and promoting value-added agriculture, noting that such efforts were vital to stabilising foreign exchange earnings and reducing the country’s vulnerability to oil price shocks.

The LCCI commended recent steps by the Nigerian Export Promotion Council (NEPC) and the Central Bank of Nigeria (CBN) to enhance export financing and streamline export documentation processes. It, however, maintained that further fiscal incentives were necessary to unlock the full potential of the agricultural sector.

The Chamber also proposed that part of the revenue generated from export levies should be reinvested into agricultural infrastructure—such as storage facilities, rural roads, and processing zones—to create a more efficient export ecosystem. It further recommended regular consultations between government agencies and the private sector to address emerging challenges in export operations.

Agricultural stakeholders believe that removing fiscal barriers such as the FOB levy for more products will help Nigerian farmers and processors penetrate international markets more effectively. They argue that with rising global demand for food commodities, Nigeria has the opportunity to position itself as a major supplier of both raw and processed agricultural goods.

In conclusion, the LCCI’s advocacy for broader FOB levy exemptions reflects growing concern among business leaders about the sustainability of Nigeria’s export environment. As the government intensifies its economic diversification drive, stakeholders insist that supportive policies—particularly for agriculture—will determine whether Nigeria can achieve its long-term growth and export ambitions.

The Chamber reaffirmed its readiness to work with the Federal Government, relevant ministries, and trade agencies to ensure that Nigeria’s export policies are not only revenue-driven but also growth-oriented, enabling the private sector to thrive as a key driver of national development.