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The Nigerian Customs Service has suspended the implementation of the widely criticised four per cent Free-on-Board value on imports.
A statement signed by the Customs National Public Relations Officer, Abdullahi Maiwada, disclosed the latest development on Tuesday in Abuja.
The amount, as stipulated in Section 18(1)(a) of the Nigeria Customs Service Act 2023, has already raised concerns among businesses struggling with high operating costs.
Maiwada said the suspension presents an opportunity to review the service’s revenue framework holistically.
The statement read, “The Nigeria Customs Service hereby announces the suspension of the implementation of four per cent Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service 2023.
“This is the sequel to ongoing consultations with the 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.”
He added that the suspension aligns with the exit of the contract agreement with the service providers, including Webb Fontaine, which were previously funded through the one per cent Comprehensive Import Supervision Scheme.
He added, “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 one per cent Comprehensive Import Supervision Scheme.
“This presents an opportunity to review our revenue framework holistically.”
The FOB charge, which is calculated based on the value of imported goods, including transportation costs up to the port of loading, means importers will pay more to bring goods into Nigeria, a cost that will likely be passed on to consumers.
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