Customs Levies Simplified: Comptroller General Adeniyi Introduces FOB Charge
Here’s a clearer snapshot of the customs reform spearheaded by Comptroller-General Bashir Adewale Adeniyi regarding the shift to a 4% Free‑on‑Board (FOB) charge:
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🧾 What Is the FOB Charge & What Changed?
- The Nigeria Customs Service Act 2023 legally mandates a 4% FOB-based charge on imports. This replaces longer-standing levies: the 1% CISS (Comprehensive Import Supervision Scheme) and the 7% cost-of-collection charge.
- The FOB charge is calculated as a percentage of the import value, including transportation to the port of loading—not to be confused with additional interim fees.
✋ Why Was It Suspended?
- Originally announced in February 2025, the 4% FOB levy was quickly suspended to allow for wider stakeholder consultations, led by the Minister of Finance and customs leadership.
- Following suspension, all import declarations made under the initial FOB levy were canceled, and affected importers were asked to resubmit declarations under the previous regime.
🔄 What Happens Next?
- Adeniyi has since signaled that the FOB charge will be reintroduced imminently—with no additional charges beyond the 4% levy, replacing CISS and cost-of-collection fees completely.
- He emphasized that doing so is necessary to fund modernization efforts, such as B’Odogwu, the new Customs clearing platform, and the Authorized Economic Operator (AEO) trade facilitation program.
⚖️ What Stakeholders Are Saying
- Freight forwarders and logistics professionals welcomed the suspension as a sign of Adeniyi’s consultative leadership and urged for continued dialogue.
- However, industry bodies like NECA and MAN warned the FOB levy would add around N2.84 trillion to import costs, potentially doubling import expenses and undermining Nigeria’s manufacturing sector.
- Stakeholders called for transparent and inclusive discussion to mitigate economic fallout.
📌 Summary Table
| Issue | Details |
|---|---|
| Legal Basis | Customs Act 2023 mandates 4% FOB levy; replaces CISS (1%) & cost-of-collection (7%) |
| Why Suspended | To allow broader stakeholder consultation and review |
| Next Steps | Reintroduction expected soon; once implemented, no further overlapping charges |
| Purpose | To raise sustainable revenue for modernization (e.g., B’Odogwu system, AEO program) |
| Stakeholder Response | Mixed—some praise consultation, others fear cost escalation and demand wider inclusion |
Would you like to explore further:
- How B’Odogwu and AEO are expected to change port operations?
- Projections on revenue impact or import cost inflation?
- The outlook for trade facilitation and business environment post-reform?
Let me know which angle you’d like next!
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