- The Nigeria Customs Service suspended the 4% Free-on-Board levy on imports after public outcry from manufacturers and stakeholders
- Assistant Comptroller Abdullahi Maiwada confirmed the suspension aims for comprehensive engagement with stakeholders regarding the new implementation framework
The Nigeria Customs Service (NCS) has suspended the implementation of the 4% Free-on-Board (FOB) value levy on imports after public outcry from manufacturers.
Reports earlier highlighted concerns about how the charge could negatively affect ease of doing business and the manufacturing sector.
In a press statement on Tuesday, Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, confirmed the suspension. He stated that the decision followed ongoing consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other stakeholders.
Maiwada explained that the suspension would allow for comprehensive engagement with stakeholders regarding the implementation framework of the new Act.
“The timing of this suspension coincides with the conclusion of contract agreements with Service providers, including Webb Fontaine, previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This provides an opportunity for a holistic review of our revenue framework.
“Under the old funding structure, repealed by the NCSA 2023, the separation of the 1% CISS and 7% cost of collection led to operational inefficiencies and funding gaps in customs modernization efforts.
“The new Act addresses these challenges by consolidating no less than 4% of the Free-on-Board value of imports, ensuring sustainable funding for essential customs operations and modernization initiatives,” he explained.
Maiwada added that the suspension period would allow further discussions with stakeholders to align with the Act’s provisions and secure sustainable funding for modernization initiatives.
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