The Nigeria Customs Service (NCS) has suspended the implementation of a 4% charge on the free-on-board (FOB) value of imports, citing the need for broader stakeholder engagement and consultations on the policy.
Abdullahi Maiwasa, Assistant Comptroller of NCS, announced the decision on Tuesday, stating that it aligns with Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023, which provides the legal foundation for the charge.
The suspension follows discussions with Wale Edun, Minister of Finance and Coordinating Minister of the Economy, and coincides with the exit of contract agreements with service providers like Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
“This presents an opportunity to review our revenue framework holistically,” Maiwasa said, noting that the previous funding model created operational inefficiencies and funding gaps in Customs modernisation. The new Act consolidates funding mechanisms to ensure sustainable financing for critical operations and technological upgrades.
The NCSA 2023 also empowers Customs to enhance operations through digital solutions, including:
- B’Odogwu clearance system for faster processing and transparency
- Single Window system (Section 33) for integrated trade facilitation
- Risk management systems (Section 32)
- Non-intrusive inspection equipment (Section 59)
- Electronic data exchange (Section 33(3))
The 4% FOB charge was initially announced on February 5 before being put on hold for further review.
