 has put the enforcement of the four per cent Free On-Board (FOB) import charge on hold, citing ongoing consultations led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.){kind=link}
The Nigeria Customs Service (NCS) has put the enforcement of the four per cent Free On-Board (FOB) import charge on hold, citing ongoing consultations led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Customs spokesperson Abdullahi Maiwada announced the suspension in a statement on Tuesday, noting that a revised timeline for implementation would be communicated after the consultations are concluded.
According to Maiwada, the decision allows for further engagements with stakeholders to ensure alignment with the Nigeria Customs Service Act (NCSA) 2023 while securing sustainable funding for modernisation initiatives.
“This suspension will enable comprehensive stakeholder engagement and consultations regarding the act’s implementation framework,” he said.
He explained that the timing coincides with the expiration of contracts with service providers such as Webb Fontaine, previously funded through the one per cent Comprehensive Import Supervision Scheme (CISS).
The suspension, he noted, presents an opportunity to reassess the revenue framework holistically.
The NCS had initially announced the implementation of the four per cent FOB charge on February 5, stating that it was in accordance with Section 18(1) of the NCSA 2023.
However, the move sparked criticism from industry stakeholders, who argued that it could exacerbate inflation and increase the cost of doing business in Nigeria.
Maiwada clarified that the previous funding model, which separated the one per cent CISS from the seven per cent cost of collection, led to inefficiencies and financial shortfalls in customs modernisation efforts.
The new act, he said, seeks to address these gaps by consolidating a four per cent charge on FOB imports to support key operational and technological advancements.
He further explained that the transition period would allow Customs to fine-tune the implementation framework to better serve stakeholders while maintaining efficiency in revenue collection and trade facilitation.
“The act empowers the service to modernise its operations through various technological innovations,” Maiwada stated, highlighting initiatives such as electronic data exchange between Customs, government agencies, and traders, as outlined in Section 28 of the NCSA 2023.
He also pointed to the recent deployment of the B’Odogwu clearance system, aimed at automating trade operations and aligning Customs processes with international best practices.
Other technological upgrades outlined in the act include the implementation of a Single Window system, risk management tools, non-intrusive inspection equipment, and enhanced electronic data exchange facilities.
Maiwada reassured stakeholders that the NCS remains committed to enforcing the provisions of the NCSA 2023 in a way that balances trade facilitation with revenue generation while prioritising transparency and efficiency.