Victory For Importers! Nigeria Customs Suspends Controversial 4% FOB Policy After Massive Backlash

The Nigeria Customs Service (NCS) has officially suspended the implementation of the 4% fee on the Free On-Board (FOB) value of imports.....KINDLY READ THE FULL STORY HERE▶

This development was disclosed in a statement issued on Tuesday in Abuja by the NCS National Public Relations Officer, Abdullahi Maiwada. He explained that the suspension aims to allow for further consultations with key stakeholders, including the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

Maiwada emphasized that pausing the policy will facilitate broader discussions on the framework for its implementation.

“The Nigeria Customs Service hereby announces the suspension of the 4% Free-on-Board (FOB) value fee on imports as outlined in Section 18(1)(a) of the Nigeria Customs Service Act 2023. This decision follows ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, alongside other stakeholders. The suspension will pave the way for comprehensive stakeholder engagement regarding the Act’s implementation framework,” the statement read.

Just last Wednesday, the NCS announced the introduction of the 4% fee, in line with the Nigeria Customs Service Act (NCSA) 2023. Section 18(1) of the Act authorizes the NCS to levy a 4% charge on the FOB value of imported goods. This charge covers the total value of the goods and transportation costs up to the loading port, and it was presented as essential for the efficient operation of the service.

However, the announcement triggered widespread backlash from stakeholders, including former Senate President Bukola Saraki, who condemned the policy. Saraki called for its suspension, arguing that it imposed an unnecessary burden on businesses already grappling with harsh economic conditions.