The Nigeria Customs Service (NCS) has announced the imposition of a 4% charge on the Free On-Board (FOB) value of imports, a move designed to streamline the service’s operations and enhance revenue collection. The decision was made public through a statement released by the NCS spokesman, Abdullahi Maiwada, on Wednesday, February 6, 2025. This new regulation, which directly affects importers, is set to be enforced in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.
According to Maiwada, the 4% charge will be calculated based on the FOB value, which includes the cost of goods and transportation expenses incurred up until the goods reach the port of loading. “In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4 percent charge on the Free On-Board (FOB) value of imports,” Maiwada stated in the announcement. He explained that this measure is vital for the effective operation of the service and will help facilitate smoother customs processes.
The NCS has acknowledged concerns raised by stakeholders regarding the continued collection of the 1% Comprehensive Import Supervision Scheme (CISS) fee. Maiwada explained that this fee, along with the new 4% FOB charge, is part of the regulatory framework designed to fund Nigeria’s Destination Inspection Scheme. “It is a regulatory charge imposed for funding Nigeria’s Destination Inspection Scheme alongside the 4 per cent FOB charge,” he added.
Maiwada further assured the public that the NCS had engaged in extensive consultations with relevant stakeholders and organizations before finalizing the decision. He emphasized the importance of compliance with the new directive, urging all stakeholders to fully support the initiative. “All stakeholders are urged to support this legally binding initiative,” he said, underscoring that the new measures align with a balanced approach after discussions with industry players, importers, and regulatory bodies.
The NCS spokesperson also emphasized that the introduction of these measures reflects a considered response to ongoing concerns within the industry. “As the measures introduced in alignment with the NCSA 2023 reflect a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies,” Maiwada said. He noted that the Customs Service remains committed to ensuring transparency and fairness throughout the implementation process.
In addition to the implementation of the 4% charge, Maiwada reassured the public that the NCS is working closely with the Federal Ministry of Finance to address all concerns raised by stakeholders. This is seen as part of the service’s commitment to being responsive to the needs and feedback of those directly affected by the new charges.
Despite the reassurances, there are still concerns within the business community regarding the impact of these additional fees on the cost of imports. Importers and industry stakeholders have expressed mixed reactions, with some arguing that the new charges could lead to increased prices for goods entering the country, which may ultimately be passed on to consumers.
The NCS, however, remains firm in its stance, emphasizing that the decision is aimed at improving the overall efficiency of the customs process. By enhancing the operational capabilities of the service, the government agency believes that it will be able to better manage the flow of imports and increase the accuracy of its assessments.
The 4% FOB charge is expected to be rolled out soon, with enforcement expected to start in the coming weeks. As the NCS prepares to enforce this new regulation, stakeholders are advised to familiarize themselves with the requirements to ensure smooth compliance and avoid potential penalties.
The NCS has also assured the public that it will continue to engage with stakeholders to refine its operations and address any emerging challenges.
