The Nigeria Customs Service (NCS) has suspended the implementation of the controversial 4% Free-on-Board (FOB) import charge to allow for further consultations with the finance ministry, trade experts, and key industry stakeholders.
The decision, announced in a statement by NCS spokesperson Abdullahi Maiwada on Tuesday, comes amid concerns from businesses and trade associations over the potential impact of the new levy on import costs.
The 4% FOB charge—calculated based on the value of goods at the point of export, excluding shipping and insurance—was introduced under the Nigeria Customs Service Act 2023 to replace the 1% Comprehensive Import Supervision Scheme (CISS). However, its suspension follows widespread calls for a review of its implementation framework.
“The Nigeria Customs Service (NCS) hereby announces the suspension of the implementation of the 4% Free-on-Board (FOB) charge on imports, as provided in Section 18(1)(a) of the Nigeria Customs Service Act 2023,” the statement read. “This decision follows ongoing consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, alongside other stakeholders.”
The NCS explained that the suspension coincides with the expiration of contracts with service providers such as Webb Fontaine, which had previously been funded through the 1% CISS charge. This, the agency said, presents an opportunity to reassess Nigeria’s customs revenue framework.
Originally, the new fee structure was designed to provide a sustainable funding mechanism for modernisation efforts, including electronic clearance systems, risk management tools, and digital data exchange platforms. However, the agency stated that suspending the charge would facilitate a smoother transition and allow for further stakeholder engagement.
“This transition period will enable the Service to optimize the management of these frameworks in a way that better serves stakeholders and national interests,” the NCS added.
The statement also highlighted the Nigeria Customs Service Act 2023, which grants the agency broader powers to modernize its operations through technology. Section 28 mandates the development of electronic systems for information exchange, while other provisions support the implementation of a national single window, non-intrusive inspection equipment, and advanced risk management systems.
The NCS is already rolling out digital solutions to streamline operations, including the recently launched B’Odogwu clearance system, which has improved transparency and efficiency in cargo clearance. Other innovations authorized under the Act include the Single Window platform (Section 33), Risk Management Systems (Section 32), and Non-Intrusive Inspection Equipment (Section 59).
The agency reaffirmed its commitment to engaging with stakeholders to ensure the successful implementation of the new revenue framework while minimizing disruptions to businesses.
