The Nigeria Customs Service (NCS) has announced the suspension of the planned 4% Free-on-Board (FOB) charge on imports, as stipulated in the Nigeria Customs Service Act (NCSA) 2023. This decision follows extensive consultations with the Minister of Finance, Mr. Olawale Edun, and other key stakeholders.
Reason for the Suspension
The suspension aims to allow for further engagement with stakeholders to refine the implementation framework. The charge was introduced to modernize customs operations by consolidating funding structures and addressing inefficiencies in the previous system.
Under the old framework, import supervision was financed through the 1% Comprehensive Import Supervision Scheme (CISS), while customs operations relied on a 7% cost of collection. The NCSA 2023 proposed replacing these with a single 4% FOB value charge to create a more sustainable revenue system.
Customs Modernization and Trade Facilitation
The NCSA 2023 empowers the NCS to drive digital transformation and enhance trade facilitation through technology-driven solutions. Some key initiatives include:
- Single Window System: A central digital platform to streamline trade processes and reduce bureaucracy.
- Risk Management Systems: AI-driven risk profiling to enhance security at Nigeria’s borders.
- Non-Intrusive Inspection Equipment: Scanning technologies to expedite cargo clearance.
- Electronic Data Exchange Facilities: Real-time data sharing among trade stakeholders for improved transparency.
Next Steps
During the suspension period, the NCS will reassess the revenue framework to ensure its alignment with Nigeria’s economic and trade facilitation goals. The modernization initiatives under the NCSA 2023 are expected to enhance efficiency, boost trade competitiveness, and improve anti-smuggling measures.
While the suspension provides relief to importers and manufacturers, discussions will continue to ensure a fair and sustainable approach to customs revenue collection.
