Suspension of 4% FOB Charge by Nigeria Customs
The Nigeria Customs Service (NCS) has announced the suspension of the planned 4% Free-on-Board (FOB) charge on imports, as outlined in Section 18(1)(a) of the Nigeria Customs Service Act 2023. This decision follows consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other stakeholders.
The suspension aims to allow for comprehensive stakeholder engagement and to review the service’s revenue framework. Previously, service providers like Webb Fontaine were funded through a 1% Comprehensive Import Supervision Scheme (CISS). The new Act proposed a 4% FOB charge to ensure sustainable funding for customs operations and modernization initiatives. However, concerns were raised about the potential financial impact on businesses and consumers.
During the suspension period, the NCS plans to engage with stakeholders to align the implementation framework with the Act’s provisions. The service has also been implementing digital solutions, such as the B’Odogwu clearance system, to enhance efficiency and transparency in customs operations.