Abdulwahab Isa 
The Nigeria Customs Service (NCS) has paused implementation of the 4% Free-on-Board (FOB) value on imports charge for an inclusive consultation with all the stakeholders to be undertaken.
Its halting of the policy was an outcome of consultation between the service and the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, and other stakeholders.
A statement issued by the Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, on behalf of the Comptroller-General of Customs, confirmed the suspension of the implementation of 4%.
FOB is provided for in Section 18(1)(a) of the Nigeria Customs Service (NCSA) 2023. Its enforcement drew criticism from maritime stakeholders. The service had last week hinted at an ongoing consultation with the Minister of Finance, hinting that the outcome of the consultation will determine the next line of decision.
The 2023 Act empowers the service to modernize its operations through various technological innovations.
Specifically, Section 28 of the NCSA 2023 authorizes developing and maintaining electronic systems for information exchange between the service, other government agencies, and traders.
Explaining its suspension, customs explained that it will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.
Part of the statement reads: “The timing of this suspension aligns with the exit of the contract agreement with the service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS). This presents an opportunity to
Review our revenue framework holistically.”.
“Under the previous funding arrangement repealed by the NCSA 2023, Separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs modernization efforts.
The new Act addresses these challenges by consolidating “not less than 4% of the Free-on-Board value of imports,” designed to ensure sustainable funding for critical customs operations and
modernization initiatives,” it said.
The transition period, the service said, will allow it to optimize the management of these frameworks to serve our stakeholders and the nation’s interests better.
“The service is already implementing several digital solutions, including the recently deployed B’Odogwu clearance system, which stakeholders are benefiting from through faster clearance times and improved transparency. Other innovative solutions authorised by the Act include Single Window implementation (Section 33), Risk management systems (Section 32), non-intrusive inspection equipment (Section 59), and Electronic data exchange facilities (Section 33(3),” it added.
The service affirmed its commitment to implementing the provisions of the act in a manner that best serves our stakeholders while fulfilling our revenue generation and trade facilitation mandate. It promised to communicate the revised implementation timeline following the conclusion of stakeholder consultations.
