Nigeria Customs Reacts to Suspension of FOB Levy on Imports
The Nigeria Customs Service (NCS) says it has begun consultation with the Ministry of Finance following a directive to suspend the implementation of the four per cent Fee On board (FOB) levy on imports.
The service spokesman, Abdullahi Maiwada, made this known in a statement on Tuesday in Abuja. The service said that the move aims to seek guidance from its supervisory ministry on alternative measures to adopt during the suspension to ensure continuity of service delivery to all stakeholders.
Maiwada reaffirmed the NCS’s commitment to supporting government fiscal policies and expressed confidence that ongoing talks with the Ministry and other stakeholders would address the concerns raised while ensuring the service met its statutory obligations.
“We look forward to constructive engagement that will ultimately serve the best interests of the Federal Republic of Nigeria, enhance revenue generation, and support the nation’s economic growth objectives through efficient customs administration,” he said.
He said that the FOB levy was not introduced recently by NCS as speculated in the media but by the National Assembly who established the four per cent FOB provision through Section 18(1)(a) of the NCS Act, 2023.
Maiwada assured all stakeholders that NCS operations would continue without any disruptions.
“We remain firmly committed to delivering efficient service, upholding international best practices and supporting Nigeria’s economic growth through effective revenue collection and enhanced trade facilitation,” he said.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Monday announced the suspension in a statement by the Ministry`s Permanent Secretary, Special Duties, Raymond Omachi.
Edun said that the move followed extensive consultations with industry stakeholders, trade experts, and relevant government officials, who expressed concern on the negative implication of the decision on the economy.
On February 4, the NCS announced plans to implement a four per cent charge on the FOB value of imports, in line with the provisions of the NCS Act 2023.
Since the announcement, the implementation has been stalled amid widespread concerns by stakeholders and experts, who warned that the move would raise importers’ costs and trigger cost-push inflation. First Holdco Drops by 5.6% on Negative Investors Sentiment
