In a dramatic twist that has rattled the Nigerian port community, the Nigeria Customs Service (NCS) has officially launched the controversial 4% Free-On-Board (FOB) charge, a decision that has sparked intense opposition from licensed Customs agents and freight forwarders. This new charge, effective February 4, 2025, has been met with confusion and resistance, as port users initially mistook it for an increase in the already unpopular Comprehensive Import Supervision Scheme (CISS) fee, also known as the import processing charge.
The roots of the uproar lie in the recently passed Nigeria Customs Act of 2023, which gives the NCS the authority to impose the 4% FOB charge in addition to the 1% CISS fee. Freight agents and importers are furious, claiming the law’s provisions were not communicated adequately before enforcement, in clear violation of the regulations set out in the same Act.
In a rare public statement on Wednesday, NCS made a bold move to address the backlash, acknowledging the frustration of stakeholders while defending the charge. The agency highlighted that the 4% charge is crucial for the effective operation of the Customs Service and is based on the value of imported goods, including all transportation costs up to the point of loading. According to Abdullahi Maiwada, the National Public Relations Officer for NCS, the 4% charge is an essential component of the sweeping reforms introduced under the new Customs Act.
The NCS went on to reassure the public that the 1% CISS fee, despite its unpopularity, remains in place, as it helps fund Nigeria’s Destination Inspection Scheme. Maiwada emphasized that ongoing discussions with the Federal Ministry of Finance are addressing the growing concerns of stakeholders, seeking a balanced resolution.
However, despite these reassurances, tensions are rising. The new policy, which is part of the Nigeria Customs Service Act (NCSA) of 2023—replacing the decades-old Customs and Excise Management Act (CEMA)—has stirred debate on the balance between effective revenue collection and fair trade practices. As the implementation continues, many within the industry are questioning whether this sudden charge could be the tipping point for a port system already grappling with inefficiencies and high costs.
Under the leadership of Comptroller General of Customs, Bashir Adewale Adeniyi, the NCS remains steadfast, calling for continued support from all stakeholders. The agency insists that these changes reflect months of consultations with key players in the industry and are necessary to maintain a fair and competitive trade environment. However, with mounting criticism and protests on the horizon, only time will tell whether this bold move will pave the way for smoother operations—or push the port community over the edge.
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2025-02-04