The Nigeria Customs Service (NCS) has suspended the implementation of the 4% Free-on-Board (FOB) charge on imports, following significant opposition from stakeholders.
This decision allows for comprehensive consultations between the Minister of Finance, Olawale Edun, and other relevant parties.
In a statement issued on Tuesday, NCS spokesman Abdullahi Maiwada explained that the suspension aligns with the conclusion of contracts 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.
The 4% FOB charge was intended to replace the older system where companies like Webb Fontaine handled import inspections for a 1% fee. The suspension period will allow the NCS to further engage with stakeholders while ensuring proper alignment with the provisions of the Nigeria Customs Service Act 2023 for sustainable funding of modernization initiatives.
This move comes amid concerns from business associations, such as the Manufacturers Association of Nigeria (MAN) and the Nigeria Employers Consultative Association (NECA), who expressed apprehension over the potential impact of the new charge on businesses already facing high operating costs.
The NCS has indicated that a revised implementation timeline will be communicated following the conclusion of stakeholder consultations.
