the Nigeria Customs Service (NCS), announced the suspension of the 4% Free-on-Board (FOB) value charge on imports, in response to strong opposition from stakeholders.
The suspension, confirmed by Customs spokesperson Abdullahi Maiwada in a statement on Tuesday, is intended to facilitate further consultations and engagement between Minister of Finance Olawale Edun and other relevant stakeholders.
The 4% FOB charge was introduced as part of a new system that aimed to replace an older arrangement where companies like Webb Fontaine conducted import inspections for a 1% fee.
Maiwada explained, “The timing of this suspension aligns with the expiration of the contract agreements with service providers, including Webb Fontaine, which were funded through the 1% Comprehensive Import Supervision Scheme (CISS).
This offers an opportunity to holistically review our revenue framework.”
He further noted that the previous funding arrangement, which was abolished by the Nigeria Customs Service Act (NCSA) 2023, created inefficiencies and funding gaps due to the separation of the 1% CISS and 7% cost of collection.
The new Act addresses these issues by consolidating “not less than 4% of the Free-on-Board value of imports” to provide sustainable funding for key customs operations and modernization efforts.
Maiwada emphasized that the transition period would allow the NCS to optimize its operations, ensuring better alignment with the interests of stakeholders and the nation.
“The suspension will give the Service additional time to engage with stakeholders and align fully with the provisions of the Act, ensuring sustainable funding for modernization initiatives,” he said.
A revised timeline for the implementation of the levy will be communicated after the conclusion of consultations with stakeholders.
