Customs Suspends 4% FOB Charge Implementation Amid Stakeholder Engagement
By Muhammad Bashir
The Nigeria Customs Service (NCS) on Tuesday, 11 February 2025, announced the suspension of the implementation of the 4% Free-on-Board (FOB) charge to allow for further consultations with stakeholders.
According to a statement signed by the NCS National Public Relations Officer, Assistant Comptroller of Customs (AC) Abdullahi Maiwada, the suspension will provide an opportunity for deeper engagement on the implementation framework of the Nigeria Customs Service Act (NCSA) 2023.
AC Maiwada stated that the decision also followed discussions with the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, as well as other key industry players.
The statement further explained that the move would align with the conclusion of contracts with service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
However, the Service noted that the previous funding structure, which separated the 1% CISS and the 7% cost of collection, led to inefficiencies and gaps in funding modernisation efforts.
“The new Act seeks to address these challenges by introducing a streamlined 4% FOB charge aimed at ensuring sustainable funding for Customs operations and technological advancements,” the statement read.
The statement, which highlighted key aspects of the NCSA 2023 in transforming the agency digitally, also noted that “the law grants the NCS the authority to develop electronic systems for seamless communication between Customs, government agencies, and traders.”
It added that “already, the Service has introduced digital solutions such as the B’Odogwu clearance system, which has improved cargo processing and transparency. Other initiatives include the implementation of a Single Window system, risk management strategies, non-intrusive inspection equipment, and electronic data exchange platforms.”
