4% FOB Levy: ‘We Recognize Your Strategic Role’, Mgmt Tells Stakeholders

BY FUNMI ALUKO

The executive management of the Nigeria Customs Service (NCS) has assured critical stakeholders in the import-export value chain that the Service recognizes the significant role they play in the national economy.

Coming on the heels of a mild objection to the introduction of the new 4% Free On-Board (FOB) value on import by customs agents, freight forwarders and importers, the management of the NCS said following the federal government directive to commence the implementation of, all Customs Area Controllers (CAC) are to engage with the relevant stakeholders in addition to providing them with the necessary sensitization.

A statement dated February 5, 2025 and signed by its Customs Public Relations Officer, Assistant Comptroller Abdullahi Maiwada said the Service also recognises stakeholders contributions and assured that the NCS is always willing to partner and work with them.

The statement reads: “The Nigeria Customs Service (NCS) proudly recognises the invaluable contributions of stakeholders in shaping and actualising the Nigeria Customs Service Act (NCSA) 2023. This landmark legislation, which replaces the long-standing Customs and Excise Management Act (CEMA) and other related laws is a product of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.

“Their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.

“In line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a 4% charge on the Free On-Board (FOB) value of imports. The FOB charge, which is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the Service.”

This is even as the service management expressed empathy for their concerns and assured them of continuous robust engagement.

“Furthermore, the NCS acknowledges concerns raised by stakeholders over the sustained collection of 1% Comprehensive Import Supervision Scheme (CISS) fee (a regulatory charge imposed for funding Nigeria’s Destination Inspection Scheme) alongside the 4% FOB charge.

“As a responsive and responsible 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.

“Under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi, the NCS reaffirms its commitment to transparency, fair trade practices, and efficient revenue management. All stakeholders are urged to support this legally binding initiative, as the measures introduced in alignment with the NCSA 2023 reflects a balanced approach borne out of extensive consultations with industry players, importers, and regulatory bodies.”