Nigeria Customs Enforces 4% FOB Charge on Goods

The Nigeria Customs Service (NCS) has announced the implementation of a 4% fee on the Free On-Board (FOB) value of imports.
According to reports, the service’s spokesperson, Abdullahi Maiwada, confirmed this development in a statement released to journalists in Abuja on Wednesday.
Maiwada stated that this endeavor is consistent with the provisions outlined in the Nigeria Customs Service Act (NCSA) 2023.

According to Section 18 (1) of the NCSA 2023, the NCS intends to impose a 4% fee on the FOB value of imported products.

This FOB price is calculated by the total value of the imported commodities, which includes both the cost of the goods and the transportation costs incurred up to the loading port, and is critical to the service’s efficient operation.

Furthermore, the NCS appreciates stakeholders’ concerns about the continuous collection of the 1 percent Comprehensive Import Supervision Scheme (CISS) fee.

“It is a regulation charge imposed to pay Nigeria’s Destination Inspection Scheme, in addition to the 4% FOB levy.

“As a responsive government agency, the service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders,” Maiwada clarified.

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He asked all parties to follow the directive, which was developed through significant consultation with key stakeholders and organisations.

“All parties are strongly encouraged to support this legally enforceable proposal.

“As the measures introduced in alignment with the NCSA 2023 reflects a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies,” he said, noting stakeholders’ vital contributions to creating and implementing the NCSA 2023.

Their contributions of insights, skills, and unwavering dedication have been critical in developing a robust legal framework that enhances efficiency, fosters innovation, and increases transparency in customs operations.

Maiwada stressed that the service, led by Comptroller-General Adewale Adeniyi, is committed to ensuring openness, equitable trading practices, and effective revenue management.