Customs suspends 4% FOB charge on import

The Nigeria Customs Service (NCS) has announced the suspension of the planned implementation of a four per cent Free-on-Board (FOB) charge on imports, as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.

This decision follows ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other key stakeholders.

The Controller General of Customs, Bashir Adeniyi, who announced this in a statement today, said the suspension aims to allow comprehensive stakeholder engagement on the framework for implementing the Act.

He said the decision also coincides with the expiration of contract agreements with service providers such as Webb Fontaine, which were previously funded through the one per cent Comprehensive Import Supervision Scheme (CISS).

Adeniyi said the NCS views this as an opportunity to reassess its revenue framework.
He noted that under the previous system, the separation of the one per cent CISS and the seven per cent cost of collection led to operational inefficiencies and funding gaps in customs modernisation efforts.

“The NCSA 2023 seeks to address these challenges by consolidating a minimum of four per cent of the FOB value of imports to ensure sustainable funding for essential customs operations and technological advancements,” he stated.

He said the Act further empowers the NCS to modernise its operations through various digital innovations.

He emphasised that Section 28 authorises the development of electronic systems for seamless information exchange between the NCS, other government agencies, and traders.

Adeniyi further stated that the Service has already implemented the B’Odogwu clearance system, which has led to faster clearance times and increased transparency. Other modernisation initiatives enabled by the Act include:

He said the suspension of the four per cent FOB charge will allow further engagement with stakeholders to ensure proper alignment with the Act’s provisions while securing sustainable funding for these modernisation efforts.

Adeniyi further reaffirmed the NCS’s commitment to implementing the Act in a manner that best serves stakeholders while maintaining its trade facilitation and revenue generation mandates.
He said that a revised timeline for the charge’s implementation will be announced following the conclusion of stakeholder consultations.