New 4% FOB Import Duty by Nigeria Customs
The Nigeria Customs Service (NCS) has announced the implementation of a 4% charge on the Free On-Board (FOB) value of imported goods, in accordance with Section 18(1) of the Nigeria Customs Service Act (NCSA) 2023. This charge is calculated based on the value of the goods and transportation expenses up to the port of loading.
The NCS emphasizes that this charge is essential for enhancing the agency’s operational efficiency. However, stakeholders have expressed concerns about the cumulative financial burden, especially since the 1% Comprehensive Import Supervision Scheme (CISS) fee, which funds Nigeria’s Destination Inspection Scheme, remains in effect alongside the new 4% FOB charge.
In response to these concerns, the NCS is engaging in extensive consultations with the Federal Ministry of Finance to address the issues raised by stakeholders. The agency urges all parties to comply with the directive, which was established after thorough discussions with relevant organizations.
Importers should anticipate an increase in costs due to this additional charge, which may subsequently affect consumer prices. For instance, a 4% increase in the FOB value of a car priced at ₦30 million would add an extra ₦1.2 million, thereby increasing the payable import duties.