Nigeria Customs Bows To Pressure, Suspends 4% FOB Policy

The Nigeria Customs Service (NCS) has announced the suspension of the 4 percent fee based on the Free On-Board (FOB) value of imports.

The suspension was made known in a statement in Abuja on Tuesday by the Customs National Public Relations Officer, Abdullahi Maiwada.

He said the suspension is based on the need to engage in further consultations with stakeholders, including the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

According to the customs spokesperson, the suspension of the policy will ensure wider consultations on the framework for the policy’s implementation.

“The Nigeria Customs Service hereby announces the suspension of the implementation of four per cent Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service 2023.

“This is the sequel to ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun, and other stakeholders.

“This suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework,” the statement read.

Naijaonpoint recalls the Nigeria Customs Service had, last Wednesday, announced the introduction of a 4 percent fee based on the Free On-Board (FOB) value of imports.

The service’s spokesperson, Abdullahi Maiwada, clarified that this initiative aligns with the stipulations outlined in the Nigeria Customs Service Act (NCSA) 2023.

According to Section 18 (1) of the NCSA 2023, the NCS is set to enforce a 4 percent charge on the FOB value of imported goods.

This FOB charge is determined by the total value of the imported items, which encompasses both the cost of the goods and the transportation expenses incurred up to the loading port, and is vital for the efficient functioning of the service.

The announcement sparked condemnation from stakeholders, including former Senate President Bukola Saraki, who called for the suspension of the policy as it signifies an unnecessary charge in a country that already has many businesses shutting down due to unfavourable business conditions.

Saraki lamented that importers and business owners would eventually pass the cost down to consumers, thus putting more economic pressure on households and individuals already struggling to survive.