Customs Service Bows to Finance Ministry Directive, Suspends 4% FOB Levy Implementation
The Nigeria Customs Service (NCS) has confirmed its compliance with the directive issued by the Federal Ministry of Finance to suspend the implementation of the controversial 4 per cent Free-on-Board (FOB) charge on imported goods.
In a statement signed by the National Public Relations Officer, Assistant Comptroller of Customs, Dr. Abdullahi Maiwada, the Service acknowledged receipt of the order and expressed appreciation to the Ministry for its intervention on the matter.
According to the Service, the suspension would not affect the continuity of customs operations across the country.
“Pursuant to this directive, the Service has begun immediate consultation with the supervisory Ministry to seek guidance on alternative measures during this suspension to ensure continuity of Service delivery to all stakeholders,” the statement read.
The NCS further assured the trading public, licensed customs agents, and international partners that it would continue to meet its statutory responsibilities without disruption, pledging to maintain efficiency and uphold international best practices in trade facilitation and revenue collection.
While reaffirming its commitment to constructive dialogue with the Ministry of Finance and other stakeholders, the Customs Service noted that such engagement was crucial in addressing concerns while safeguarding Nigeria’s economic growth objectives.
The Service also moved to clarify widespread media reports suggesting that the 4 per cent FOB levy was a recent introduction. Dr. Maiwada stressed that the provision was legally enshrined in Section 18(1)(a) of the Nigeria Customs Service Act, 2023, which stipulates “not less than 4% of the free-on-board value of imports according to international best practices” as a statutory funding mechanism for customs operations.
He added that discussions remain ongoing to strike a balance between effective service delivery and the government’s fiscal policies.
“The Nigeria Customs Service remains firmly committed to delivering efficient service, upholding international best practices and supporting Nigeria’s economic growth through effective revenue collection and enhanced trade facilitation,” Dr. Maiwada stated.
The suspension of the levy follows mounting concerns from stakeholders who had argued that its implementation would have adverse implications on businesses and the wider economy.
