The Nigeria Customs Service (NCS) has confirmed receipt of a directive from the Federal Ministry of Finance ordering the suspension of the implementation of the four per cent Free-on-Board (FOB) charge on imported goods, even as it clarified that the provision was not newly introduced but enshrined in the Nigeria Customs Service Act, 2023.
In a statement issued on Tuesday by its National Public Relations Officer, Abdullahi Maiwada, the Service said it has already commenced consultations with the supervisory ministry to determine alternative measures during the suspension period in order to ensure continuity of service delivery to stakeholders.
The Customs spokesperson noted that the Service remains optimistic about ongoing discussions with the Ministry of Finance and other stakeholders, stressing that while the suspension has raised concerns in the trading community, the Service is committed to ensuring that its statutory obligations are met effectively.
“We look forward to constructive engagement that will ultimately serve the best interests of the Federal Republic of Nigeria, enhance revenue generation, and support the nation’s economic growth objectives through efficient customs administration,” Maiwada stated.
He also addressed speculations in sections of the media that the 4% FOB charge was a recent creation of the Customs Service. According to him, the provision was clearly stipulated under Section 18(1)(a) of the Nigeria Customs Service Act, 2023, which provides for “not less than 4% of the free-on-board value of imports according to international best practices” as a statutory funding mechanism for the Service’s operations.
Maiwada stressed that Customs operations will continue without disruption despite the suspension, assuring stakeholders—including the trading public, licensed customs agents, and international partners—that the Service will uphold efficiency, international standards, and trade facilitation while ensuring optimal revenue collection for the government.
The suspension of the 4% FOB levy follows growing concerns and debates among stakeholders, particularly importers and clearing agents, over the additional financial burden it could pose on trade. The Ministry of Finance is expected to provide further guidance in the coming days on possible alternative measures.
