The Nigeria Customs Service (NCS) has suspended the implementation of the controversial 4% Free-on-Board (FOB) charge on imports, as outlined in the Nigeria Customs Service Act (NCSA) 2023.
The decision, was disclosed in a statement by the Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, following consultations with the Minister of Finance, Mr. Olawale Edun, and key stakeholders. The move is expected to allow for further engagements to refine the framework for implementing the charge.
The suspension comes at a critical time, coinciding with the expiration of contracts with service providers like Webb Fontaine, which previously handled customs automation under the 1% Comprehensive Import Supervision Scheme (CISS). Under the previous model, funding gaps and inefficiencies in the separation of the 1% CISS and 7% cost of collection slowed down customs modernisation efforts. The NCSA 2023 sought to streamline funding by consolidating it under a single provision requiring “not less than 4% of the FOB value of imports.”
With the suspension in place, the NCS is expected to focus on fine-tuning its revenue framework while ensuring that customs operations remain technologically advanced. The Act empowers the Service to leverage innovation for trade facilitation, including the adoption of electronic systems that integrate seamlessly with other government agencies. The B’Odogwu clearance system, a recent technological upgrade, has already enhanced transparency and reduced clearance delays.
Further modernisation efforts outlined in the Act include the implementation of a Single Window platform to eliminate bureaucratic bottlenecks, risk management systems driven by artificial intelligence, and non-intrusive inspection technologies for faster cargo clearance. Additionally, electronic data exchange facilities are expected to improve information sharing between customs and trade stakeholders, boosting efficiency.
These innovations position the Nigeria Customs Service for a more technology-driven future, aligning its operations with global trade standards. While the suspension of the 4% FOB charge offers temporary relief to importers, the NCS maintains that a refined implementation strategy will ensure sustainable revenue generation without disrupting trade.