NCS Suspends 4% FOB Charge Following Finance Ministry Directive

The Nigeria Customs Service (NCS) has announced the suspension of the 4% Free-on-Board (FOB) levy on imports, in compliance with a directive from the Federal Ministry of Finance.

In a statement signed by its National Public Relations Officer, Abdullahi Maiwada, on Tuesday, the Service said it had commenced consultations with the Ministry to explore alternative measures that would sustain service delivery during the suspension.

“The NCS remains optimistic about ongoing discussions with the Federal Ministry of Finance and other relevant stakeholders to address concerns raised while ensuring that the Service’s statutory obligations are met effectively,” the statement noted.

The Customs Service also clarified that contrary to reports suggesting the levy was a recent policy, the 4% FOB provision was enacted by the National Assembly under Section 18(1)(a) of the Nigeria Customs Service Act, 2023. The law, it explained, prescribes “not less than 4% of the free-on-board value of imports according to international best practices” as a statutory funding mechanism for the Service.

While assuring stakeholders of seamless operations, the NCS reaffirmed its commitment to efficient service delivery, international best practices, and support for Nigeria’s economic growth through revenue collection and trade facilitation.