Following intense opposition from stakeholders, the Nigeria Customs Service has announced the suspension of the implementation of a 4% Free-on-Board (FOB) value on imports.
Customs’ spokesman, Abdullahi Maiwada, in a statement on Tuesday, said the suspension would enable comprehensive engagement and consultations between the Minister of Finance Olawale Edun and other stakeholders.
The FOB, which is a 4% charge on imported goods, was meant to replace an older system where companies like Webb Fontaine handled import inspections for a 1% fee.
“The timing of this suspension aligns with the exit of the contract agreement with the Service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This presents an opportunity to review our revenue framework holistically,” Maiwada said.
“Under the previous funding arrangement repealed by the Nigeria Customs Service Act (NCSA) 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts.
“The new Act addresses these challenges by consolidating “not less than 4% of the Free-on-Board value of imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives. This transition period will allow the Service to optimise the management of these frameworks to serve our stakeholders and the nation’s interests better.”
“The suspension period will allow the Service to further engage with stakeholders while ensuring proper alignment with the Act’s provisions for sustainable funding of these modernisation initiatives.
“We will communicate the revised implementation timeline following the conclusion of stakeholder consultations,” he said.
