Nigeria Customs Service Suspends 4% FOB Charge For Stakeholders’ Engagement
The Nigeria Customs Service (NCS) has suspended the implementation of the 4% Free-on-Board (FOB) value on imports, as provided in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
This decision comes on the heels of ongoing consultations with the Nigerian Minister of Finance, Olawale Edun, and other stakeholders.
The suspension aims to enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.
According to Abdullahi Maiwada, Assistant Comptroller of Customs and National Public Relations Officer, the timing of this suspension aligns with the exit of the contract agreement with service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
The NCSA 2023 addresses operational inefficiencies and funding gaps in customs modernisation efforts by consolidating “not less than 4% of the Free-on-Board value of imports.”
This transition period will allow the Service to optimise the management of these frameworks to serve stakeholders and the nation’s interests better.
The Act also empowers the Service to modernise its operations through technological innovations, including:
– Electronic Systems: Developing and maintaining electronic systems for information exchange between the Service, other government agencies, and traders.
– Digital Solutions: Implementing digital solutions, such as the recently deployed B’Odogwu clearance system, which has improved clearance times and transparency, and
– Innovative Solutions: Authorising innovative solutions, including Single Window implementation, Risk management systems, Non-intrusive inspection equipment, and Electronic data exchange facilities.
The suspension period will allow the Service to further engage with stakeholders while ensuring proper alignment with the Act’s provisions for sustainable funding of modernisation initiatives.
The NCS reiterated its committed to implementing the provisions of the Act in a manner that best serves stakeholders while fulfilling its revenue generation and trade facilitation mandate.
