The Nigeria Customs Service (NCS) has announced the suspension of the 4% Free-on-Board (FOB) charge on imports, following consultations with the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, and other stakeholders.
The NCS National Public Relations Officer, Assistant Comptroller Abdullahi Maiwada, disclosed this in a statement, explaining that the suspension aims to allow comprehensive stakeholder engagement on the implementation framework of the Nigeria Customs Service Act (NCSA) 2023.
Background and Justification for Suspension
The suspension comes as the contract agreement with service providers, including Webb Fontaine, expires. Previously, these service providers were funded through the 1% Comprehensive Import Supervision Scheme (CISS), which has now been repealed by the NCSA 2023.
Maiwada stated that the new Act consolidates a minimum of 4% of the FOB value of imports to ensure sustainable funding for customs operations and modernization efforts. However, the transition requires further engagement with stakeholders to optimize revenue collection and streamline implementation.
Modernization Plans and Digital Initiatives
The NCSA 2023 mandates the modernization of customs operations through technology, including:
- Electronic systems for seamless information exchange between Customs, other government agencies, and traders (Section 28).
- Single Window implementation to enhance trade facilitation (Section 33).
- Risk management systems for improved efficiency (Section 32).
- Non-intrusive inspection equipment to speed up cargo clearance (Section 59).
- Electronic data exchange facilities to enhance transparency (Section 33(3)).
Stakeholder Engagement and Next Steps
The NCS emphasized that the suspension period would allow for deeper consultations with importers, exporters, and other stakeholders to ensure that the new funding model aligns with industry needs and national interests.
“The NCS remains committed to implementing the provisions of the Act in a manner that best serves our stakeholders while fulfilling our revenue generation and trade facilitation mandate,” the statement read.
The revised implementation timeline will be communicated after the conclusion of stakeholder consultations.
