The Nigeria Customs Service (NCS) has announced the suspension of the proposed 4% Free-on-Board (FOB) charge on imports as stipulated in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023. The decision follows ongoing consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other key stakeholders.
The suspension aims to allow for further engagement with stakeholders to refine the implementation framework of the new Act. It also coincides with the expiration of the contract agreements with service providers, including Webb Fontaine, who were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This transition presents an opportunity for the Customs Service to reevaluate its revenue framework comprehensively.
Under the previous funding structure, the separation of the 1% CISS and the 7% cost of collection resulted in operational inefficiencies and funding gaps for customs modernization. The NCSA 2023 seeks to address these issues by consolidating “not less than 4% of the Free-on-Board value of imports” to ensure sustainable funding for critical customs operations and modernization initiatives. The suspension will allow the Service to optimize this transition for better efficiency and national interest.
The Act also empowers the NCS to modernize operations through various technological innovations. Section 28 mandates the development and maintenance of electronic systems for seamless information exchange between Customs, other government agencies, and traders. Already, the Service has deployed digital solutions like the B’Odogwu clearance system, improving clearance times and transparency. Other technological advancements authorized by the Act include the Single Window System (Section 33), Risk Management Systems (Section 32), Non-Intrusive Inspection Equipment (Section 59), and Electronic Data Exchange Facilities (Section 33(3)).
The suspension period will enable further engagement with stakeholders to ensure proper alignment with the Act’s provisions while securing sustainable funding for modernization efforts. The NCS remains committed to executing the Act’s directives in a way that best serves stakeholders, enhances trade facilitation, and supports revenue generation.
A revised implementation timeline will be announced upon the conclusion of stakeholder consultations.
){kind=link}
