Customs seek alternative funding options after FOB levy removal
The Nigeria Customs Service (NCS) has initiated consultations with the Federal Ministry of Finance to explore alternative funding options following the federal government’s recent suspension of the 4 percent Free-On-Board (FOB) levy on imported goods.
In a statement issued on Tuesday, NCS spokesperson Abdullahi Maiwada confirmed that the Service is working closely with the ministry to ensure uninterrupted service delivery to stakeholders during the suspension period.
The 4% FOB charge, which was collected on the value of imported goods, was suspended with immediate effect on September 15, 2025, by directive of the Ministry of Finance. Maiwada acknowledged the ministry’s directive and affirmed the NCS’s continued commitment to supporting federal fiscal policies.
“Pursuant to this directive, the Service has begun immediate consultation with the supervisory Ministry to seek guidance on alternative measures during this suspension to ensure continuity of service delivery to all stakeholders,” said Maiwada.
He emphasized the NCS’s optimism about ongoing discussions with the Finance Ministry and other key stakeholders, noting that the objective is to address current concerns while maintaining the agency’s statutory responsibilities.
Maiwada also addressed recent media claims that the levy was a new introduction, clarifying that the 4% FOB charge is legally grounded in the Nigeria Customs Service Act, 2023. Specifically, Section 18(1)(a) of the Act provides for “not less than 4% of the free-on-board value of imports according to international best practices” as a statutory funding mechanism for Customs operations.
“The Service wishes to clarify that this is not a newly introduced charge but a provision duly established by the National Assembly,” he added.
Despite the suspension, the NCS assured stakeholders—including importers, customs agents, and international trade partners—of its readiness to continue operations without disruptions. Maiwada reiterated the agency’s commitment to efficient service delivery, international best practices, and its role in facilitating trade and supporting national economic growth.
“We look forward to constructive engagement that will ultimately serve the best interests of the Federal Republic of Nigeria, enhance revenue generation, and support the nation’s economic growth objectives through efficient customs administration,” he said.
