Nigeria Customs Service Suspends Implementation of 4% FOB Charge To Foster Stakeholder Engagement, Modernisation

Nigeria Customs Service Suspends Implementation of 4% FOB Charge To Foster Stakeholder Engagement, Modernisation

Comptroller General of Customs,Bashir Adewale Adeniyi MFR

By Frank Odinukaeze

The Nigeria Customs Service (NCS) has announced a temporary suspension of the implementation of the 4% Free-on-Board (FOB) charge on imports. This decision, as per Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023, aims to facilitate further consultations with key stakeholders, including the Honourable Minister of Finance, Mr Olawale Edun, and other relevant parties.

The suspension is intended to provide ample time for comprehensive stakeholder engagement regarding the Act’s implementation framework. It also coincides with the end of contract agreements with service providers such as Webb Fontaine, previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This situation presents a unique opportunity to reevaluate the revenue framework holistically.

Under the now-repealed funding arrangement, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps, hindering customs modernisation efforts. The new Act addresses these issues by consolidating “not less than 4% of the Free-on-Board value of imports,” ensuring sustainable funding for essential customs operations and modernisation initiatives. This transition period will enable the NCS to optimise the management of these frameworks to better serve stakeholders and national interests.

In addition, the Act empowers the NCS to modernise its operations through various technological innovations. Section 28 of the NCSA 2023 authorises the development and maintenance of electronic systems for information exchange between the NCS, other government agencies, and traders. The service has already implemented several digital solutions, such as the recently deployed B’Odogwu clearance system, which has improved clearance times and transparency. Other innovative solutions authorised by the Act include Single Window implementation (Section 33), Risk management systems (Section 32), Non-intrusive inspection equipment (Section 59), and Electronic data exchange facilities (Section 33(3)).

During the suspension period, the NCS will engage further with stakeholders to ensure proper alignment with the Act’s provisions for sustainable funding of modernisation initiatives. The NCS remains committed to implementing the Act in a manner that best serves stakeholders while fulfilling its revenue generation and trade facilitation mandate. A revised implementation timeline will be communicated after the conclusion of stakeholder consultations.
Abdullahi Maiwada , Assistant
Comptroller of Customs(ACC),and
National Public Relations Officer,NCS made this known on Tuesday,in a press statement.