The Nigeria Customs Service (NCS) has suspended the implementation of the 4% Free-on-Board (FOB) value charge on imports, following strong opposition from stakeholders.
This decision comes after extensive consultations with the Minister of Finance, Mr. Olawale Edun, and other key players in the trade and manufacturing sectors.
The charge, introduced under Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023, was intended to consolidate funding for customs operations and replace the 1% Comprehensive Import Supervision Scheme (CISS). However, businesses and industry leaders raised concerns about its impact on the cost of imports and overall economic stability.
The Manufacturers Association of Nigeria (MAN) argued that the policy would add an estimated ₦2.84 trillion to business costs, worsening inflation and economic hardship. The charge also coincided with a proposed 15% increase in port charges, further raising concerns about the rising cost of doing business in Nigeria.
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Critics pointed out that the policy contradicted ongoing fiscal and tax reforms aimed at reducing multiple taxation. Additionally, stakeholders feared it would encourage smuggling and trade infractions, ultimately hurting government revenue rather than boosting it.
Given the widespread opposition, the NCS acknowledged the need for further consultation and refinement of the implementation framework. The suspension provides an opportunity for a more balanced approach that aligns with Nigeria’s economic realities.
Despite the suspension, the NCS reaffirmed its commitment to modernising its operations through technology-driven initiatives.
The NCSA 2023 empowers the Service to enhance trade facilitation via digital solutions such as the Single Window platform, risk management systems, and non-intrusive inspection equipment. These efforts are expected to improve efficiency and revenue generation while addressing the stakeholder concerns.
