By Oluwakemi Kindness
The Nigeria Customs Service (NCS) has suspended the implementation of the controversial 4% Free-on-Board (FOB) charge on imported goods, following a directive from the Federal Ministry of Finance.
In a statement on Tuesday, the Service said it has commenced consultations with the ministry to explore alternative measures that will sustain its operations during the suspension period.
“The Service appreciates the Ministry’s engagement on this matter and remains committed to supporting government fiscal policies,” NCS spokesperson, Abdullahi Maiwada, stated.
Customs boss, Adewale Adeniyi clarified in the statement that the 4% FOB was not arbitrarily introduced by the Service, as widely reported.
He said it is provided for in the Nigeria Customs Service Act, 2023. Section 18(1)(a) of the Act.
According him, it mandates “not less than 4% of the free-on-board value of imports according to international best practices” as part of the Service’s statutory funding mechanism.
Maiwada assured stakeholders, including importers, customs agents and international trade partners, that operations will continue seamlessly.
He stressed that the Service remains focused on enhancing revenue generation and trade facilitation in line with national economic growth objectives.
The suspension follows widespread public concern and pushback from traders and economic actors who argued that the levy could worsen Nigeria’s cost-of-importation challenges.
