By ZAKAA LAZARUS, Abuja
The Nigeria Customs Service (NCS) has announces the suspension of the
implementation of 4% Free-on-Board (FOB) value on imports as provided in Section
18(1)(a) of the Nigeria Customs Service (NCSA) 2023.
This is sequel to ongoing
consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun and other Stakeholders.
This suspension will enable comprehensive stakeholder engagement and
consultations regarding the Act’s implementation framework. 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Under the previous funding arrangement repealed by the NCSA 2023,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 modernisation 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
modernisation initiatives. This transition period will allow the Service to optimise
the management of these frameworks to serve our stakeholders and the nation’s
interests better.
The Act further empowers the Service to modernise its operations through
various technological innovations. Specifically, Section 28 of the NCSA 2023
authorises developing and maintaining electronic systems for information exchange
between the Service, Other Government Agencies, and traders.
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)).
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 modernisation initiatives.
The NCS remains committed to implementing the provisions of the Act in a
manner that best serves our stakeholders while fulfilling our revenue generation and
trade facilitation mandate. We will communicate the revised implementation
timeline following the conclusion of stakeholder consultations.
