The Nigerian Customs Service (NCS) has ignited a wave of discussions within the import-export sector with the implementation of a 4% charge on the Free On-Board (FOB) value of all imported goods. This move, authorised by the recently enacted Nigeria Customs Service Act (NCSA) 2023, has drawn both support and criticism from stakeholders.
The NCS spokesperson, Abdullahi Maiwada, justified the new charge in a statement, emphasising its alignment with the provisions of Section 18(1) of the NCSA 2023. “The FOB charge, calculated based on the value of imported goods, including transportation costs to the port of loading, is crucial for ensuring the effective operation of the service,” Maiwada explained.
However, the announcement has also reignited concerns surrounding the 1% Comprehensive Import Supervision Scheme (CISS) fee. While acknowledging these concerns, Maiwada clarified that the CISS fee remains in place, serving as a regulatory charge to fund Nigeria’s Destination Inspection Scheme alongside the 4% FOB charge.
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“As a responsive government agency, we are actively engaging with the Federal Ministry of Finance to address all concerns raised by stakeholders,” Maiwada assured. He further highlighted the extensive consultations conducted with industry players and regulatory bodies before the implementation of these measures, emphasising that the NCSA 2023 reflects a balanced approach born from these collaborative efforts.
The NCS, under the leadership of Comptroller-General Adewale Adeniyi, has reiterated its commitment to transparency, fair trade practices, and efficient revenue management. The agency believes these measures will not only enhance customs operations but also contribute significantly to Nigeria’s economic growth.
Analysis:
The introduction of the 4% FOB charge marks a significant shift in Nigeria’s import policy. While the NCS emphasises the necessity of this charge for effective service delivery, it remains crucial to carefully assess its potential impact on businesses, particularly small and medium-sized enterprises (SMEs).
Increased import costs could lead to higher prices for consumers, potentially impacting inflation rates. Moreover, the cumulative effect of the 4% FOB charge alongside the existing CISS fee could pose a significant burden on businesses, potentially hindering their competitiveness and impacting overall economic growth.
It is imperative that the NCS closely monitor the impact of these measures and engage in ongoing dialogue with stakeholders to address any unintended consequences. Transparency and clear communication are crucial to building trust and ensuring the smooth implementation of these policy changes.
