Customs to scrap multiple levies, introduce single 4% FOB charge

The Nigeria Customs Service (NCS) says it will soon replace multiple import charges with a single four percent Free on Board (FOB) levy.

This is in a bid to simplify its fee structure and support ongoing digital reforms.

FOB is a shipment term indicating the point at which a buyer or seller assumes ownership and liability for goods being transported.

Adewale Adeniyi, comptroller general of customs, announced the plan during a town hall meeting with industry stakeholders in Ikeja, Lagos.

The meeting focused on the B’Odogwu clearance system and wider customs reform efforts.

B’Odogwu system also know as Unified Customs Management System (UCMS), is a fully digital platform built to streamline customs operations.

It also eliminate bottlenecks, and promote transparency in Nigeria’s import and export systems.

Adeniyi explained that this system will bring in efficiency and save cost for Nigerins.

“Once the 4% FOB takes effect, the 1% Comprehensive Import Supervision Scheme (CISS) will cease automatically,” Adeniyi said.

“In addition, the 7% cost of collection currently charged will also be completely removed.”

He explained that the new system is more transparent and beneficial for all parties involved.

“Under the new Act, the 4% FOB is paid upfront — and that’s it,” he said.

“Thereafter, 100% of the revenue generated by Customs will go into the Federation Account. It’s a win-win for everyone.”