Concerns are mounting across Nigeria’s business community following the Nigeria Customs Service’s (NCS) reintroduction of the four per cent Free-on-Board (FOB) levy, a move many fear will drive up import costs, worsen inflation, and further strain the competitiveness of local industries.
The levy, which replaces the previous seven per cent customs collection charge and the one per cent Comprehensive Import Supervision Scheme (CISS) fee, has been criticised for leading to a net increase in clearing costs—particularly for vehicle imports and high-volume goods—amid Nigeria’s volatile economic environment.
The four per cent FOB charge is calculated based on the value of imported goods, including the cost of the goods and transportation expenses up to the port of loading.
Speaking to newsmen, Secretary of the Customs Consultative Committee, Dr Eugene Nweke, cautioned that while the NCS introduced the charge under its new B’Odogwu Clearance System to modernise customs operations, the unintended economic impact could be severe.
“In a market already under pressure from currency instability, high duty rates, and persistent port inefficiencies, this additional cost is perceived as a blow to trade and business confidence,” Nweke said.
Amid these concerns, the Nigeria Customs Service has also issued a 21-day ultimatum to 223 companies that imported goods under the Temporary Admission Permits (TAP) scheme without fulfilling their duty obligations.
The TAP is a concession under international and Nigerian customs law that allows companies to temporarily import goods without paying duties, on the condition that the goods are either re-exported within a specified time frame or converted for home use without alteration beyond normal depreciation.
In a statement issued Tuesday, the NCS warned defaulters to regularise their importation status on or before August 17, either by:
Failure to comply, the Service stated, would trigger penalties, including bond invocation and other legal consequences.
The dual policy measures tightened TAP enforcement and the revived FOB levy have raised questions among importers and stakeholders about the long-term sustainability of customs revenue strategies amid economic headwinds.
