By Anthony Nwachukwu
Sequel to ongoing consultations with stakeholders, the Nigeria Customs Service (NCS) has announced the suspension of the implementation of 4 per cent Free-on-Board (FOB) value on imports, which is provided for in Section 18(1)(a) of the Nigeria Customs Service (NCSA) 2023.
A statement by the National Public Relations Officer, Abdullahi Maiwada, on behalf of the Comptroller-General of Customs, Adewale Adeniyi, explained that the suspension will enable comprehensive stakeholder engagement and consultations on the Act’s implementation framework.
It assured the revised implementation timeline would be communicated at the conclusion of stakeholder consultations.
Maiwada said the timing of this suspension aligns with the exit of the contract agreement with service providers, including Webb Fontaine, which were previously funded through the 1 per cent Comprehensive Import Supervision Scheme (CISS).
“This presents an opportunity to review our revenue framework holistically,” the NCS said. “Under the previous funding arrangement repealed by the NCSA 2023, separating the 1 per cent CISS and 7 per cent cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts.”
According to the agency, the new Act addresses these challenges by consolidating “not less than 4 per cent of the Free-on-Board value of imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives.”
It added that this transition period will allow the service to optimise the management of these frameworks to serve our stakeholders and the nation’s interests better.
The statement further highlighted that the Act also empowers the agency to modernise its operations through various technological innovations, including developing and maintaining electronic systems for information exchange with other government agencies and traders.
Consequently, several digital solutions, including the recently deployed B’Odogwu clearance system, which stakeholders are benefiting from through faster clearance times and improved transparency, are already being implemented.
Also provided for in the Act are the single window implementation, risk management systems, non-intrusive inspection equipment and electronic data exchange facilities, among others.
The NCS assured of its committed to implementing the provisions of the Act in a manner that best serves stakeholders, while fulfilling its revenue generation and trade facilitation mandate.
