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In response to widespread criticism from clearing agents and importers, the Nigeria Customs Service (NCS) has instructed its Area Commands to hold meetings, workshops and sensitisation sessions aimed at clarifying the purpose, process and compliance requirements of the newly introduced 4 per cent Free on Board (FOB) levy.
A circular issued on Wednesday, February 5th, and signed by the Deputy Comptroller General of Customs for Finance, Administration and Technical Services, DCG Mohammed Bello Jibo, explained that the levy is designed to bolster revenue generation and ensure compliance with the NCS Act 2023.
“Inline with the implementation of the 4 per cent Free on Board (FOB) levy, it is imperative that all Customs Area Controllers take proactive steps to engage and educate importers, clearing agents, and relevant stakeholders on the modalities for its collection,” the circular stated.
“The 4 per cent Free on Board (FOB) levy is aimed at enhancing revenue generation and ensuring compliance with the NCS Act 2023.”
The document further emphasised the importance of strict adherence to the new levy and instructed Area Commands to provide periodic updates on their engagement and compliance efforts.
Despite the levy being supported by the Customs Management Act 2023, its introduction earlier this week sparked outrage within the licensed customs agents’ community, particularly among members of the Association of Nigerian Licensed Customs Agents (ANLCA).
The Vice President of ANLCA, Segun Oduntan, expressed frustration, stating that the Customs Service had rolled out the levy without any prior consultation or sensitization efforts.
“We noticed the NCS has introduced 4 per cent and renamed it Customs Operation Finance as appeared on this assessment. The Customs CG needs to call for an emergency meeting within 48 hours to address this development because it is already causing uproar in the freight forwarding system. All the freight forwarding associations would have to come together on this matter,” Oduntan asserted.
Adding to the chorus of discontent, former Sole Administrator of ANLCA, Babatunde Mukaila, criticised the levy as a disguised attempt to charge importers and agents for what should be part of Customs’ statutory responsibilities.
“The collection is like payment for doing their job. It’s like they want us to start paying them for doing their jobs and for coming to office. This is why we are spoiling for war. We have also been calling for a percentage of the collection in our revenue we generated but they didn’t approve, now they want us to pay them 4 per cent,” Mukaila lamented.
