The customs has announced the suspension of the implementation of the four percent free-on-board value on imports, as outlined in the 2023 Customs Act.
This announcement was made to the public on Wednesday, February 12, 2025, via a press statement signed by the Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada.
The decision to suspend the implementation, the customs explained, follows discussions between the Minister of Finance, Mr. Olawale Edun, and stakeholders, to allow for more consultations regarding the implementation of the charge.
Maiwada said the timing coincides with the conclusion of contracts with service providers, such as Webb Fontaine, which were previously funded under the one percent comprehensive import supervision scheme.
He added that the withdrawal of this funding structure has led to operational inefficiencies and funding gaps in customs modernization efforts.
“The new Act consolidates funding to create a more sustainable revenue framework that supports critical operations and modernization initiatives.
“It enables customs to enhance operations through advanced technological solutions, facilitating improved information exchange between the Service, other government agencies, and traders,” the customs stated.
However, the statement said key innovations currently in progress include the B’Odogwu clearance system, which aims to improve clearance times and enhance transparency.
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Other initiatives include the implementation of a single window, risk management systems, non-intrusive inspection equipment, and electronic data exchange facilities.
“The suspension period is intended to promote further engagement with stakeholders, while ensuring alignment with the Act’s provisions for sustainable funding.
“Customs is committed to implementing the provisions of the Act in a manner that benefits stakeholders, while fulfilling its responsibilities for revenue generation and trade facilitation.
“The NCS remains committed to implementing the provisions of the Act in a manner that best serves our stakeholders, while fulfilling our revenue generation and trade facilitation mandate.
“We will communicate the revised implementation timeline following the conclusion of stakeholder consultations” the statement concluded.
