Nigeria Customs Service Suspends 4% FOB Charge
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Nigeria Customs Service Suspends 4% FOB Charge
By Alabidun Shuaib AbdulRahman
The Nigeria Customs Service (NCS) has suspended the implementation of the 4% Free-on-Board (FOB) charge on imports, following intense pressure from stakeholders.
This decision was made public in a statement issued by Abdullahi Maiwada, Assistant Comptroller of Customs and National Public Relations Officer.
According to the statement, the suspension is aimed at allowing for comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.
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The NCS is currently reviewing its revenue framework holistically, following the exit of its contract agreement with service providers, including Webb Fontaine.
The 4% FOB charge was introduced as part of the Nigeria Customs Service Act (NCSA) 2023, which aims to ensure sustainable funding for critical customs operations and modernisation initiatives.
However, stakeholders had raised concerns about the additional burden the charge would place on businesses already grappling with high operational costs amid worsening inflation.
The NCS has emphasized its commitment to implementing the provisions of the Act in a manner that best serves stakeholders while fulfilling its revenue generation and trade facilitation mandate.
A revised implementation timeline is expected to be communicated following the conclusion of stakeholder consultations.
In related developments, the NCS has been working to modernize its operations through various technological innovations, including the deployment of the B’Odogwu clearance system, which has reportedly improved clearance times and transparency for stakeholders.
