Nigeria Customs suspends 4 per cent FOB levy on imports

The Nigeria Customs Service, NCS, has suspended the implementation of the four percent Free-on-Board, FOB, value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service Act, NCSA, 2023, amid pushback from stakeholders.
This was contained in a statement by the Public Relations Officer of the Service, Abdullahi Maiwada, on Tuesday in Abuja.
Maiwada said the suspension period would allow the Service to further engage with stakeholders while ensuring proper alignment with the Act’s provisions for sustainable funding of modernisation initiatives.
According to him, the suspension would also enable comprehensive stakeholder engagement and consultations on the NCSA implementation framework, adding that the timing of the suspension aligned with the exit of the contract agreement with the service providers, including Webb Fontaine, which were previously funded through the one percent Comprehensive Import Supervision Scheme, CISS.
He said that this presented an opportunity to review the customs revenue framework holistically.
Maiwada said that under the previous funding arrangement repealed by the NCSA 2023, separating the one percent CISS and seven percent cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts.
“The new Act addresses these challenges by consolidating ‘not less than four percent of the FOB value of imports,’ designed to ensure sustainable funding for critical customs operations and modernisation initiatives.
“This transition period will allow the Service to optimise the management of these frameworks to better serve our stakeholders and the nation’s interests.
“The Act further empowers the Service to modernise its operations through various technological innovations. Specifically, Section 28 of the NCSA 2023 authorises developing and maintaining electronic systems for information exchange between the Service, other government agencies, and traders,” he said.
DAILY POST reports that the suspension is coming following the ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and other stakeholders.
The Manufacturers Association of Nigeria, MAN, had called on the federal government to direct the NCS to stop its implementation.
MAN also disclosed that its members were actively considering divesting or relocating their businesses to more conducive neighboring countries due to incessant levies and the worsening business environment in Nigeria.
Similarly, the Nigeria Employers Consultative Association, NECA, on Tuesday expressed fresh concern over the destructive impact of multiple fees imposed on businesses by government revenue agencies.
Nigeria Customs suspends 4 per cent FOB levy on imports