Customs Overhaul: 4% FOB Levy Replaces 7% + 1% Fees
The Nigeria Customs Service (NCS) has announced a major reform:
✔ Scrapped: 7% federation collection fee + 1% CISS charge
✔ New Levy: 4% Free On Board (FOB) fee (based on goods’ value at loading port)
✔ Goal: Fund B’Odogwu—a homegrown digital clearance system replacing NICIS II
💡 Why the Change?
🔹 Efficiency: Faster, tech-driven clearance via Unified Customs Management System (UCMS)
🔹 Transparency: Reduce bottlenecks & corruption in ports
🔹 Global Standards: Align with World Customs Organization (WCO) practices
🗣️ Comptroller-General Adewale Adeniyi Explains
“The 4% levy isn’t arbitrary—it’s vital to modernize Customs. ‘Sweet soup needs money.’”
“B’Odogwu will showcase Nigeria’s tech capacity to the world, especially as we chair the WCO.”
📌 Key Takeaways for Importers
✅ No double charges: 4% FOB replaces old fees (no extra 1% CISS or 7% levy)
✅ Digital shift: B’Odogwu aims for paperless, faster clearance
✅ Stakeholder appeal: Customs seeks cooperation during transition
🌍 Bigger Picture
- WCO Leadership: Nigeria’s 2023 Customs Act supports the levy
- Economic Impact: Smoother trade = better revenue, fewer delays
- Precedent: Similar levies fund modernization in other countries
⚠️ Stakeholder Concerns
- Will 4% actually reduce costs? Customs insists it’s net savings vs. old 8% total.
- Tech reliability: Can B’Odogwu handle Nigeria’s port congestion?
📅 What’s Next?
- Full rollout of B’Odogwu system
- Stakeholder sensitization on new levy
- WCO showcase: Nigeria to promote B’Odogwu globally
#CustomsModernization #TradeFacilitationNG
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