The Nigeria Customs Service (NCS) has announced the suspension of the 4% Free-on-Board (FOB) charge on imported goods, as part of ongoing consultations with key stakeholders, including the Minister of Finance, Olawale Edun. This move is in response to the National Customs Service Act (NCSA) 2023, which mandates a comprehensive review and engagement with industry partners.
The suspension, confirmed by NCS National Public Relations Officer, Abdullahi Maiwada, is designed to allow for more in-depth discussions regarding the framework for implementing the new law. The suspension will give stakeholders time to align with the new revenue framework and modernisation initiatives under the NCSA 2023.
“The suspension of the 4% FOB charge, as stipulated in Section 18(1)(a) of the NCSA 2023, will enable thorough stakeholder engagement and refine the operational strategies for better service delivery,” Maiwada explained. He further noted that the timing of the suspension coincides with the end of the contract agreement with service providers such as Webb Fontaine, who were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
According to NCS, the previous funding system, which separated the 1% CISS and the 7% cost of collection, led to operational inefficiencies and funding gaps in the agency’s modernization efforts. The new Act, however, consolidates these charges to support sustainable funding for customs operations and technological advancements.
One of the key benefits of the new Act is its focus on modernizing the NCS operations, including the development of electronic systems for improved information exchange between the NCS, other government agencies, and traders. The NCS has already implemented several digital solutions, such as the B’Odogwu clearance system, which has improved clearance times and transparency for stakeholders.
Other innovations under the NCSA 2023 include the introduction of a Single Window system, risk management tools, non-intrusive inspection equipment, and enhanced electronic data exchange facilities. These efforts are aimed at increasing the efficiency and transparency of the Customs Service, benefiting both the government and businesses.
The NCS has pledged to continue working closely with stakeholders throughout the suspension period to ensure proper alignment with the Act’s provisions and the successful implementation of its modernization plans. The NCS will communicate a revised timeline for the implementation of the 4% FOB charge after consultations are concluded.
