Customs suspends implementation of 4% FOB levy

The Nigeria Customs Service has suspended the implementation of the four per cent charge on the Free On-Board (FOB) value of imports.

The Customs spokesman, Abdullahi Maiwada, made this known in a statement on Tuesday, February 11, 2025.

Maiwada noted that the FOB charge essential to drive the effective operation of the service was calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading.

The NCS had, on February 5, announced that it was implementing a 4 per cent charge on the FOB value of imports.

Maiwada stated that the move was in line with the provisions of Section 18 (1) of the Nigeria Customs Service Act (NCSA) 2023.

The announcement received criticism from experts and stakeholders in the sector, who said the move would worsen the country’s inflation rate.

However, the NCS spokesman said the suspension was a sequel to ongoing consultations by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, with stakeholders.

He said the revised implementation timeline would be announced following the conclusion of the consultation.

Maiwada explained that the suspension period would allow the service to further engage with stakeholders while ensuring proper alignment with the Act’s provisions for the sustainable funding of its modernisation initiatives.

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The Customs spokesperson stated: “This suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.

“The timing of this suspension aligns with the exit of the contract agreement with the service providers, including Webb Fontaine, which were previously funded through the 1 per cent Comprehensive Import Supervision Scheme (CISS).

“This presents an opportunity to review our revenue framework holistically.”

Maiwada noted that the previous funding arrangement, which was repealed by the NCSA 2023, separated the one per cent CISS and the seven per cent cost of collection.

Maiwada said this created operational inefficiencies and funding gaps in customs modernisation efforts.

According to him, the new Act addresses the challenges by consolidating no less than four per cent of the FOB value of imports to ensure sustainable funding for critical customs operations and modernisation initiatives.

He added that the transition period would allow the service to optimise the management of these frameworks to better serve its stakeholders and the nation’s interests.

The Star