From Godwin Tsa, Abuja
The Nigeria Customs Service (NCS) has announced the suspension of the implementation of the 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
A statement by the National Public Relations Officer, Assistant Comptroller of Customs, Abdullahi Maiwada, said the decision followed ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other stakeholders.
According to Maiwada, this suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.
The timing of this suspension aligns with the exit of the contract agreement with service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This presents an opportunity to review the revenue framework holistically.
Under the previous funding arrangement repealed by the NCSA 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts.
The new Act addresses these challenges by consolidating “not less than 4% of the Free-on-Board value of imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives. This transition period will allow the Service to optimise the management of these frameworks to better serve stakeholders and the nation’s interests.
The Act further empowers the Service to modernise its operations through various technological innovations. Specifically, Section 28 of the NCSA 2023 authorises the development and maintenance of 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 authorised by the Act include:
– Single Window implementation (Section 33)
– Risk management systems (Section 32)
– Non-intrusive inspection equipment (Section 59)
– 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 modernisation initiatives.
The NCS remains committed to implementing the provisions of the Act in a manner that best serves stakeholders while fulfilling its revenue generation and trade facilitation mandate. The Service will communicate the revised implementation timeline following the conclusion of stakeholder consultations.