The Nigerian Customs Service has suspended the enforcement of the controversial four per cent Free-on-Board value on imports. A statement issued by the Customs National Public Relations Officer, Abdullahi Maiwada, announced this recent update on Tuesday in Abuja.
The fee, outlined in Section 18(1)(a) of the Nigeria Customs Service Act 2023, has generated concerns among businesses already facing elevated operating expenses.
Maiwada noted that the suspension provides an opportunity to reassess the revenue framework of the service comprehensively.
“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 Act 2023.” The statement read.
He added that this suspension coincides with the conclusion of the contract with service providers, including Webb Fontaine, which had been funded via the one per cent Comprehensive Import Supervision Scheme.
The FOB charge, calculated based on the total value of imported goods and transportation costs to the loading port, would lead to higher expenses for importers, a cost likely to be transferred to consumers.
