The Nigeria Customs Service (NCS) has announced the suspension of the implementation of the 4% Free-on-Board (FOB) charge on imports, as stipulated in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023. The decision followed ongoing consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other key stakeholders.
In a statement released by the National Public Relations Officer, Assistant Comptroller of Customs Abdullahi Maiwada, the NCS stated that the suspension will allow for comprehensive stakeholder engagement to fine-tune the Act’s implementation framework. The decision comes as the contract agreements with service providers, including Webb Fontaine, who were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS), near their expiration.
The NCSA 2023 replaced the previous funding structure, which separated the 1% CISS and the 7% cost of collection, leading to operational inefficiencies. The new Act consolidated “not less than 4% of the Free-on-Board value of imports” to provide sustainable funding for customs operations and modernisation efforts. The suspension period will enable a thorough review of the revenue framework to ensure seamless implementation.
Additionally, the Act empowered the NCS to modernise its operations through digital innovations. Section 28 of the Act mandates the development of electronic systems for data exchange with other government agencies and traders. Already, the NCS has deployed the B’Odogwu clearance system, improving clearance times and transparency. Other technological advancements authorised by the Act included the Single Window system, risk management tools, non-intrusive inspection equipment, and electronic data exchange facilities.
Meanwhile,the NCS has reaffirmed its commitment to implementing the Act in a manner that balances revenue generation with trade facilitation. The Service will announce a revised timeline for the 4% FOB charge implementation after concluding stakeholder consultations.
