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The Nigeria Customs Service (NCS) has announced the temporary halt of the contentious 4% Free-on-Board (FOB) levy on imports, as specified in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
According to Chimezie Godfrey, the Nigeria Customs Service (NCS) has declared the suspension of the contentious 4% Free-on-Board (FOB) tariff on imports according to Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
This move follows ongoing discussions with the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, as well as other significant stakeholders.
The Comptroller-General of NCS, Bashir Adewale Adeniyi, announced this in a statement signed by the Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, which was shared with journalists in Abuja on Tuesday.
He stated, “The suspension will enable the NCS to engage in thorough discussions with relevant parties to evaluate the implementation framework for the new charge.”
This decision comes at a crucial moment, aligning with the end of contract agreements with service providers like Webb Fontaine, which were previously financed through the 1% Comprehensive Import Supervision Scheme (CISS).
This provides an opportunity to reassess the revenue framework in light of the new Act, he explained.
Adeniyi highlighted that the NCSA 2023 brought about considerable reforms, including the consolidation of the 4% charge on imports to remedy operational inefficiencies that persisted under the prior CISS and collection cost structure.
“These inefficiencies led to funding gaps for customs modernization initiatives. The new charge is intended to guarantee sustainable financing for essential customs operations and modernization projects, particularly considering the technological advancements approved by the Act,” he added.
He emphasized that the suspension will also support the continuation of key modernization efforts like the B’Odogwu clearance system, which has already enhanced clearance times and transparency.
Adeniyi mentioned that the NCSA 2023 permits the development of various digital systems aimed at improving information sharing among the NCS, other government bodies, and traders.
He also pointed out other major projects authorized by the Act, such as the implementation of the Single Window, risk management systems, and equipment for non-intrusive inspection.
“During the suspension period, the NCS is dedicated to engaging with stakeholders to ensure proper alignment with the NCSA 2023 provisions.
“The Service will announce a revised schedule for the 4% charge's implementation once these consultations are concluded,” he asserted.
The CGC reiterated NCS’s commitment to fulfilling its revenue generation and trade facilitation responsibilities while ensuring that the enforcement of the new Act benefits all stakeholders involved.
