In response to mounting pressure from industry stakeholders, the Nigeria Customs Service (NCS) has suspended the implementation of a 4 per cent Free-on-Board (FOB) levy on imports.
NCS spokesperson Abdullahi Maiwada announced the decision in a statement yesterday.
He cited the need for further consultations between the Minister of Finance, Olawale Edun, and key stakeholders.
The proposed 4 per cent FOB levy was intended to replace a previous system where firms like Webb Fontaine conducted import inspections for a 1 per cent fee.
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However, its introduction sparked concerns among importers and industry players.
“This suspension coincides with the termination of the contract agreement with service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
“This provides an opportunity to reassess our revenue framework holistically,” Maiwada explained.
Under the repealed funding arrangement, the 1 per cent CISS and the 7 per cent cost of collection were managed separately, leading to operational inefficiencies and financial gaps in customs modernization efforts.
The Nigeria Customs Service Act (NCSA) 2023 seeks to address these challenges by consolidating funding through a levy of “not less than 4 per cent of the Free-on-Board value of imports,” ensuring sustainable financing for critical customs operations and modernization initiatives.
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During the suspension period, the NCS will engage stakeholders to refine the framework and align its implementation with the provisions of the new Act.
“We will announce a revised implementation timeline once consultations are concluded,” Maiwada stated.
