The Sea Empowerment and Research Centre (SEREC) has urged the Federal Ministry of Finance to reinstate the former one per cent Comprehensive Import Supervision Scheme (CISS) levy as an interim funding mechanism to replace the Nigeria Customs Service’s (NCS) suspended four per cent Free-on-Board (FOB) charge on imports to ensure clarity and stability in trade administration.
In its advisory, signed by the Head of Research, Dr Eugene Nweke, SEREC cautioned that the suspension, which is to ease import costs, contain inflation and protect business competitiveness, creates a policy vacuum that could disrupt revenue flows and weaken Customs modernisation efforts.
The group said suspending the levy without a replacement creates a funding gap that may pressure Customs to seek informal recovery methods and distort trade.
The research body said the FOB levy is a key revenue stream mandated by Section 18(1)(a) of the Nigeria Customs Service Act 2023 and introduced to finance Customs operations.
SEREC also warned that while the move has been welcomed by importers and trade groups, Customs’ operational finances could face a significant shortfall if alternative funding is not swiftly secured.
The group also called for immediate legislative engagement to review and amend the Customs Act as well as align statutory provisions with practical, stakeholder-accepted revenue options.
The research body emphasised that a multi-stakeholder taskforce, including the Ministry of Finance, NCS, Nigerian Economic Summit Group (NESG), manufacturers, freight forwarders, importers, shippers and exporters, is needed to design a balanced funding formula.
The research body also called for clear communication with the trading community to avoid uncertainty, sustain trust, and ensure smooth Customs modernisation efforts.
The group said that while the suspension reflects government responsiveness to stakeholder concerns, coherent fiscal administration requires that revenue directives be consistent, transparent, and legally grounded.
The body also added that a synchronised approach, such as suspending four per cent FOB, reinstating one per cent CISS, and initiating statutory amendment, will preserve policy credibility, support Customs modernisation, and enhance Nigeria’s trade environment.
“The suspension highlights a classic clash between law and policy, where fiscal needs, trade facilitation, and inflation management intersect. While the Ministry has provided short-term relief, the underlying legal provision ensures that the debate over the four per cent FOB levy will persist until a sustainable and equitable funding alternative is institutionalised.
“This is a policy pause, not a resolution—the issue will resurface unless law and policy are harmonised,” the group stated.
