The Nigeria Customs Service (NCS) has suspended the implementation of the 4% Free-on-Board (FOB) value charge on imports as specified in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023. This decision comes after extensive discussions with the Honorable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other key stakeholders.
According to a statement signed by the Customs National Public Relations Officer, Abdullahi Maiwada, he stated that the suspension is intended to allow for broader stakeholder engagement to refine the implementation framework of the Act.
He mentioned that the decision also aligns with the expiration of contract agreements with service providers like Webb Fontaine, which were previously financed through the one percent Comprehensive Import Supervision Scheme (CISS).
Maiwada also noted, “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 one percent Comprehensive Import Supervision Scheme. This presents an opportunity to review our revenue framework holistically.”
According to the statement, “This transition period will allow the Service to optimize the management of these frameworks to serve our stakeholders and the nation’s interests better. “The Act further empowers the Service to modernize its operations through various technological innovations. Specifically, Section 28 of the NCSA 2023 authorizes developing and maintaining electronic systems for information exchange between the Service, Other Government Agencies, and traders.
“The Service is already implementing several digital solutions, including the recently deployed B’Odogwu clearance system, which stakeholders are benefiting from through faster clearance times and improved transparency. Other innovative solutions authorized by the Act include Single Window implementation (Section 33), Risk management systems (Section 32), Non-intrusive inspection equipment (Section 59), and electronic data exchange facilities (Section 33(3)).
“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 modernization initiatives.
The NCS reiterates its dedication to executing the Act’s provisions in a way that prioritizes stakeholders’ interests while upholding its responsibilities in revenue generation and trade facilitation. The revised implementation timeline will be announced after completing stakeholder consultations, ensuring a well-aligned and effective rollout.
