The Nigeria Customs Service has suspended the implementation of the 4% Free-on-Board value charge on imports, as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
In a statement signed by Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, the NCS said the decision followed extensive consultations with Finance Minister and Coordinating Minister of the Economy, Olawale Edun, and other key stakeholders.
The suspension allows for further engagement with stakeholders to refine the Act’s implementation framework.
This policy shift comes as contract agreements with service providers like Webb Fontaine expire, previously funded through the 1% Comprehensive Import Supervision Scheme.
Previously, separating the 1% CISS and the 7% cost of collection led to inefficiencies and funding gaps in customs modernization.
The NCSA 2023 seeks to address this by consolidating funding, allowing “not less than 4% of the Free-on-Board value of imports.”
The framework aims to create a sustainable funding mechanism for customs operations, technological upgrades, and modernization.
During the suspension, the NCS will work on optimizing revenue management while ensuring alignment with national economic goals and trade facilitation.
The NCSA 2023 empowers the Nigeria Customs Service to advance modernization through technology.
Section 28 mandates the development and maintenance of electronic systems for seamless information exchange between the NCS, government agencies, and traders.
As part of its digital transformation, the NCS has implemented several innovations, including the recently deployed B’Odogwu clearance system, which has improved clearance times and enhanced transparency in the import process.
