The Nigeria Customs Service (NCS) has announced the suspension of the controversial 4% Free-on-Board (FOB) charge on imports as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023
By Chimezie Godfrey
The Nigeria Customs Service (NCS) has announced the suspension of the controversial 4% Free-on-Board (FOB) charge on imports as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
This decision follows ongoing consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other key stakeholders.
The Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi disclosed this via a statement signed by the National Public Relations Officer (NCS), Assistant Comptroller of Customs, Abdullahi Maiwada made available to newsmen in Abuja on Tuesday.
“The suspension will allow the NCS to engage in comprehensive discussions with relevant parties to review the framework for implementing the new charge.
“The decision comes at a pivotal time, coinciding with the expiration of the contract agreements with service providers, including Webb Fontaine, previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This presents an opportunity to reassess its revenue framework in light of the new Act,” he stated.
Adeniyi noted that the NCSA 2023 introduced significant reforms, including consolidating the 4% charge on imports to address operational inefficiencies that had existed under the previous CISS and cost of collection structure.
“These inefficiencies had resulted in gaps in funding for customs modernization efforts. The new charge aims to ensure sustainable funding for critical customs operations and modernization initiatives, especially in light of technological advancements authorized by the Act,” he stated.
He emphasized that the suspension would also facilitate the continuation of key modernization projects, such as the B’Odogwu clearance system, which has already improved clearance times and transparency.
Adeniyi added that the NCSA 2023 authorizes the development of various digital systems to enhance information exchange between the NCS, other government agencies, and traders.
He pointed out that other key initiatives authorized by the Act include the Single Window implementation, risk management systems, and non-intrusive inspection equipment.
“While the suspension period is in effect, the NCS is committed to engaging with stakeholders to ensure proper alignment with the provisions of the NCSA 2023.
“The Service will communicate a revised timeline for the implementation of the 4% charge following the conclusion of these consultations,” he stressed.
The CGC reiterated the NCS commitment to fulfilling its revenue generation and trade facilitation mandate while ensuring that the implementation of the new Act serves the best interests of all stakeholders.
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