Customs Bows To Pressure, Suspends 4% FOB Levy On Imports
Following widespread stakeholder opposition, the Nigeria Customs Service (NCS) has suspended the implementation of a 4% Free-on-Board (FOB) levy on imports.
In a statement issued on Tuesday, Customs spokesman Abdullahi Maiwada explained that the suspension would allow for a comprehensive review and further consultations between Finance Minister Olawale Edun and other industry stakeholders. The 4% levy—intended to replace the previous arrangement under which firms like Webb Fontaine handled import inspections for a 1% fee—will now be reassessed.
Maiwada noted, “The timing of this suspension coincides with the termination of existing contracts with service providers such as Webb Fontaine, which were previously funded under the 1% Comprehensive Import Supervision Scheme (CISS). This presents an opportunity to review our revenue framework holistically.”
He added that under the old funding system—separating the 1% CISS from a 7% cost of collection—operational inefficiencies and funding gaps had hampered efforts to modernise customs operations. The new Nigeria Customs Service Act (NCSA) 2023, by consolidating “not less than 4% of the FOB value of imports,” is designed to provide a more sustainable funding mechanism for critical customs functions and modernization initiatives.
“This suspension period will enable us to further engage with stakeholders and ensure that any revised implementation aligns properly with the Act’s provisions for sustainable funding and modernisation,” Maiwada said. He promised that the NCS would announce a revised implementation timeline once stakeholder consultations are completed
