The Nigeria Customs Service (NCS) has announced the suspension of the implementation of the 4 per cent Free-on-Board (FOB) value charge on imports, as stipulated in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
National Public Relations Officer of NCS, Abdullahi Maiwada, said in a statement that the suspension was sequel to extensive consultations with the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, alongside other key stakeholders.
Maiwada, an Assistant Comptroller of Customs, said the suspension aims to facilitate comprehensive engagement with relevant stakeholders to refine the framework for implementing the Act.
The NCSA 2023 was designed to address these shortcomings by consolidating the funding structure under a provision that allows “not less than 4% of the Free-on-Board value of imports.”
The new framework is expected to provide a more sustainable funding mechanism for critical customs operations, technological advancements, and modernisation initiatives.
The NCS said during the period of the suspension, the NCS will focus on optimising the management of the new revenue framework while ensuring that its implementation aligns with national economic interests and trade facilitation objectives.
The NCSA 2023 empowers the Nigeria Customs Service to drive modernisation through various technological innovations. Section 28 of the Act mandates the development and maintenance of electronic systems to facilitate seamless information exchange between the NCS, other government agencies, and traders.
The Manufacturers Association of Nigeria (MAN) had earlier on Tuesday, called for the suspension of the implementation of the 4 per cent charge on all FOB value of imports.
