Abuja: The Nigeria Customs Service (NCS) has suspended the implementation of the four per cent charge on the Free On-Board (FOB) value of imports. The Spokesman of the service, Abdullahi Maiwada, announced this in a statement on Tuesday, highlighting the charge’s calculation based on the value of imported goods, including the cost of goods and transportation expenses up to the port of loading.
According to News Agency of Nigeria, the NCS had initially announced the implementation of the four per cent charge on February 5, under the provision of Section 18 (1) of the Nigeria Customs Service Act (NCSA) 2023. The announcement was met with criticism from experts and stakeholders who argued that the move could exacerbate the country’s inflation rate. Dr. Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry, criticized the abruptness of the implementation and the lack of consultation with stakeholders, as required by the NCSA 2023 provisions.
Maiwada mentioned that the suspension follows ongoing consultations by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, with stakeholders. A revised implementation timeline will be announced upon the conclusion of these consultations. The suspension aims to allow further engagement with stakeholders to ensure proper alignment with the Act’s provisions for sustainable funding of modernisation initiatives.
He explained that the timing of this suspension coincides with the exit of the contract agreement with service providers, including Webb Fontaine, previously funded through the one per cent Comprehensive Import Supervision Scheme (CISS). This presents an opportunity to holistically review the revenue framework. The previous funding arrangement, repealed by the NCSA 2023, separated the one per cent CISS and the seven per cent cost of collection, creating operational inefficiencies and funding gaps in customs modernisation efforts.
The new Act consolidates no less than four per cent of the FOB value of imports to ensure sustainable funding for critical customs operations and modernisation initiatives. The transition period will allow the NCS to optimise the management of these frameworks to better serve stakeholders and the nation’s interests. The NCS is already implementing several digital solutions, such as the recently deployed B’Odogwu clearance system, which automates trade operations and aligns the service with international standards. Stakeholders benefit from faster clearance times and improved transparency.
Maiwada reaffirmed the NCS’s commitment to implementing the Act’s provisions in a manner that best serves stakeholders while fulfilling its revenue generation and trade facilitation mandate.