The Nigeria Customs Service (NCS) has suspended the implementation of the 4% Free-on-Board (FOB) levy on imports following strong opposition from stakeholders.
Customs spokesperson Abdullahi Maiwada, in a statement on Tuesday, said the decision would allow for further consultations between the Minister of Finance, Olawale Edun, and key industry players.
The 4% FOB charge was introduced to replace the previous system, where companies like Webb Fontaine handled import inspections for a 1% fee.
“This suspension coincides with the termination of contracts with service providers, including Webb Fontaine, which were funded through the 1% Comprehensive Import Supervision Scheme (CISS). It provides an opportunity for a comprehensive review of our revenue framework,” Maiwada stated.
He explained that the new Nigeria Customs Service Act (NCSA) 2023 sought to address inefficiencies in the previous funding structure by consolidating “not less than 4% of the FOB value of imports” to sustain customs operations and modernisation efforts.
Maiwada assured that the suspension would allow Customs to refine the implementation process while ensuring stakeholder interests are considered.
“The revised implementation timeline will be communicated after extensive consultations,” he added.