The Nigeria Customs Service (NCS) has bowed to pressure from the Organised Private Sector of Nigeria (OPSN) and suspended its controversial 4% Free-on-Board (FoB) levy, following intense opposition from key business stakeholders.
The suspension is seen as a significant step towards addressing concerns and ensuring broader consultations before the levy’s implementation.
Comptroller-General of Customs, Bashir Adewale Adeniyi, announced the suspension on February 11, 2025, stating that it would allow time for more comprehensive discussions with the Minister of Finance, Olawale Edun, and other concerned parties. “This suspension will enable us to engage with all relevant stakeholders and refine the implementation framework,” Adeniyi said in a statement.
The levy, introduced under the Nigeria Customs Service Act (NCSA) 2023, had sparked an uproar in the business community, with many fearing its adverse effects on trade and operations.
In a statement signed by Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada on Wednesday, Adeniyi explained: “The timing of this suspension aligns with the exit of the contract agreement with the Service providers, including Webb Fontaine, which were previously funded through the one per cent Comprehensive Import Supervision Scheme (CISS).” .
In line with the suspension, NCS will review its revenue framework and consider adjustments to modernise customs operations. Adeniyi emphasised that the previous funding arrangement had led to inefficiencies, and the pause offers an opportunity to address these gaps.
