CUSTOMS MULLS EARLY RETURN OF 4% FOB IMPORTS LEVY

By Alex Akao

Barely five months after the Nigeria Customs Service (NCS) suspended the collection of four percent Free-On-Board (FOB) levy on imports, the Service has indicated hints of early return of the controversial surcharge.

Imminent re-introduction of the levy which was hurriedly suspended few weeks after it’s commencement, was announced by the Controller General of Customs (CGC) Bashir Adewale Adeniyi, in Lagos, Monday, during an engagement with stakeholders.
The flip-flop four-percent policy was introduced in February 2025, ostensibly to aid the function of the B’Odogwu goods clearing module. It was however hastily suspended by the Customs after the flurry of emotions it generated among Shippers, manufacturers, importers and their agents.

Addressing participants at the Lagos Marriott hotel, venue of the stakeholders’ parley, Adeniyi said the return of the collection has become imperative.

According to him, B’Odogwu, the indigenously developed trade platform, needed the four-percent levy to enhance its operational efficiency and fund the technology as well as the modernisation programme of the service.

He said B’Odogwu which has so far been applauded by the stakeholders, has a huge capital outlay that requires sustained funding.

Speaking further, the CGC noted that as the Customs is gradually migrating from the “NICIS II platform to indigenous trade platform” called B’Odogwu, “the exercise and transition to the new platform requires a lot of money”.

He maintained that funding such technological evolution requires a lot of money and that the NCS has already invested heavily in the process.

Adeniyi further appealed for the understanding of stakeholders present that introduction of the 4 percent FOB is inevitable if Nigeria is to enjoy the dividends of this new technological innovation.

“We have no choice in the payment of the 4 percent FOB because it is needed by the Customs to fund the huge technology and modernisation programme it has embarked on.

“The four per cent is not a new thing. God bless the soul of the late President Mohammedu Buhari who saw the need for extra funding before the provision was embedded in the Customs Act of 2023.

“When we introduced this levy some months ago, we were asked to hold on and consult with our stakeholders. Iam now telling you that we have no choice than to introduce the levy because technology does not come cheap and in a Yoruba parlance ‘ the soup that is sweet is as a result of money”, Adeniyi declared.

The CGC reminded his audience that with him now as the Chairman of the World Customs Organization (WCO), the Nigeria Customs would use B’Odogwu to show the world that the Service has the capacity and competence to develop its own indigenous technology that will enhance its operations.

“Now it is going to be B’Odogwu to the world…
Now that we have the WCO Council Chairmanship with us, let’s use the opportunity to sell B’Odogwu to the world and tell them that we have the capacity and competence to develop our own technology to enhance our operations”, the CGC said.

He however assured the stakeholders that there would be no extra charges after the 4 percent FOB, as this would replace the one-percent Comprehensive Import Supervision Scheme (CISS).

  • Keji Mustapha

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