The Nigeria Customs Service (NCS) has suspended the implementation of the 4% FOB (Free-on-Board) value charge on imports as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
The decision, announced in a statement signed by Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, on Tuesday, follows consultations with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, along with other stakeholders.
According to the statement, the move aims to allow further discussions with relevant stakeholders to refine the framework for implementing the Act. The suspension comes as contracts with service providers such as Webb Fontaine, who were previously financed through the 1 per cent Comprehensive Import Supervision Scheme (CISS), have expired.
Under the previous system, the 1 per cent CISS and the 7 per cent cost of collection were handled separately, leading to inefficiencies and funding gaps in customs operations. The NCSA 2023 sought to address this by consolidating funding under a provision that allows “not less than 4 per cent of the Free-on-Board value of imports”. The NCS stated that this approach was designed to create a sustainable mechanism for funding customs operations, technological upgrades, and modernisation initiatives.
During the suspension, the NCS will focus on optimising the management of the new revenue framework to align with national economic priorities and trade facilitation.
The NCSA 2023 mandates the NCS to modernise its operations through technological innovations. Section 28 of the Act requires the development and maintenance of electronic systems to enhance information exchange between customs, other government agencies, and traders.
As part of its digital transformation, the NCS has implemented several solutions, including the B’Odogwu clearance system, which has improved clearance times and transparency. Other key initiatives in the Act include:
Single Window Implementation (Section 33): A centralised digital platform to streamline trade facilitation and reduce bureaucratic delays.
Risk Management Systems (Section 32): Use of data analytics and artificial intelligence to improve risk profiling and security at entry points.
Non-Intrusive Inspection Equipment (Section 59): Deployment of scanning technologies to speed up cargo clearance while reducing physical inspections.
Electronic Data Exchange Facilities (Section 33(3)): Enhancing interoperability and real-time data sharing among trade stakeholders.
The NCS stated that these measures are expected to improve trade competitiveness, customs efficiency, and anti-smuggling efforts.
