The Nigeria Customs Service (NCS) has announced the immediate suspension of its recently introduced 4% Free-on-Board (FOB) levy on imports, following intense opposition from various stakeholders.
The announcement was made in a statement released on Tuesday, February 11 by Customs spokesman Abdullahi Maiwada.
The 4% FOB levy was intended to replace a previous system where companies like Webb Fontaine handled import inspections for a 1% fee.
“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,” Maiwada stated.
However, the abrupt implementation of the new levy sparked widespread criticism from businesses and importers, who argued that it would increase costs and negatively impact trade.
“The suspension period will allow the Service to further engage with stakeholders while ensuring proper alignment with the Act’s provisions for sustainable funding of these modernization initiatives,” Maiwada explained.
Meanwhile, the NCS has pledged to communicate a revised implementation timeline after these consultations are concluded.
It maintained that the new levy is crucial for sustainable funding of critical customs operations and modernization initiatives.