The Nigeria Customs Service (NCS) has announced 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 (NCSA) 2023.

In a statement on Tuesday, the Assistant Comptroller of Customs
National Public Relations Officer, Abdullahi Maiwada, said the suspension is sequel to ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun and other stakeholders.

Maiwada also stated that the suspension would enable comprehensive stakeholder engagement and consultations regarding the Act's implementation framework.

He said the timing of 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 (CISS).

"This presents an opportunity to
review our revenue framework holistically," he said.

Maiwada stated that under the previous funding arrangement repealed by the NCSA 2023, separating the one per cent CISS and seven per cent cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts.

According to him, the new Act addresses these challenges by consolidating "not less than four per cent 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," he said.

He said the Act further empowers the NCS 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))," he said.

Maiwada said the suspension period will allow the NCS 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," he concluded.