Customs plans to replace multiple import levies with 4% FOB charge

The Comptroller-General of Customs (CGC), Adewale Adeniyi, has announced plans by the Nigeria Customs Service (NCS) to replace the existing 1 percent Comprehensive Import Supervision Scheme (CISS) and the 7 percent cost of collection levied on importers with a single 4 percent Free On Board (FOB) charge under a new revenue structure.

The move to replace multiple import levies, aimed at streamlining charges and enhancing transparency, was revealed during a stakeholder town hall meeting held in Lagos on Monday.

According to the Customs CG, “Now, talking seriously, in terms of the 4 percent FOB that I spoke about in the earlier session, with the implementation of 4 percent FOB, the 1 percent CISS and the 7 percent cost of collection, which is also being charged, will be completely removed.

“Talking about the 7 percent cost of collection, it is taken from the federation account to administer Customs operations. What this represents is that the three tiers of government, the federal government, the state government, and the other sub-nationals, will comprise 70 percent of what is brought to the federation account.

“That’s what we have practised in the last 10 years. However, under the new Act, 4 percent FOB is to be paid up front, and that’s it. Once that is done, it is 100 percent of the revenue generated by Customs that will go to the federation account. So it’s going to be a win-win situation for all of us.”

Adeniyi emphasized that this change is part of broader reforms accompanying the rollout of the B’Odogwu clearance platform, a homegrown digital solution designed to enhance trade facilitation. He reassured stakeholders that the Nigeria Customs Service remains committed to a transparent and efficient implementation process.

The town hall, themed “Enhancing Trade Compliance and System Optimisation Through Stakeholder Engagement”, brought together freight forwarders, clearing agents, and trade partners.

Stakeholders welcomed the simplification of charges but also raised concerns regarding system transition delays, particularly around bank processing and documentation.

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