BREAKING: FG Suspends Implementation of FOB Charge in Nigeria

The Nigeria Customs Service has announced the suspension of the implementation of the Free-on-Board (FOB) value charge on imports, as stipulated in the Nigeria Customs Service Act.

This decision, communicated through a press release signed by Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, follows extensive consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, alongside other key stakeholders.

The suspension aims to facilitate comprehensive engagement with relevant stakeholders to refine the framework for implementing the Act. The timing of this policy shift coincides with the expiration of contract agreements with service providers previously financed through the Comprehensive Import Supervision Scheme.

Under the previous system, the separation of the Comprehensive Import Supervision Scheme and the cost of collection created inefficiencies and funding gaps in the modernization of customs operations. The Nigeria Customs Service Act was designed to address these shortcomings by consolidating the funding structure under a provision that allows for a percentage of the Free-on-Board value of imports.

This framework is expected to provide a more sustainable funding mechanism for critical customs operations, technological advancements, and modernization initiatives.

The Nigeria Customs Service says during the suspension period, they will focus on optimizing the management of this new revenue framework while ensuring that its implementation aligns with national economic interests and trade facilitation objectives.

The Nigeria Customs Service Act empowers the Nigeria Customs Service to drive modernization through various technological innovations. The Act mandates the development and maintenance of electronic systems to facilitate seamless information exchange between the Nigeria Customs Service, other government agencies, and traders.

As part of its digital transformation agenda, the Service has already implemented several innovative solutions, including the recently deployed B’Odogwu clearance system.

This system has significantly improved clearance times and enhanced transparency within the import process. Other key modernization initiatives outlined in the Act include single window implementation, risk management systems, non-intrusive inspection equipment, and electronic data exchange facilities.

These advancements are expected to bolster Nigeria’s trade competitiveness, improve customs efficiency, and strengthen anti-smuggling measures.