The Nigeria Customs Service (NCS) has announced plans to replace its existing seven per cent Customs collection and one per cent Comprehensive Import Supervision Scheme (CISS) fees with a new four per cent Free on Board (FOB) levy. The move, according to the Comptroller General of Customs, Adewale Adeniyi, is aimed at financing a world-class Customs modernisation programme anchored on the newly introduced B’Odogwu Clearance System.
Adeniyi made this disclosure during a stakeholders’ town hall meeting in Lagos on Monday, which brought together importers, freight forwarders, shipping lines, terminal operators, financial institutions, and other key industry players. He explained that the 4% FOB levy would not impose an additional financial burden on importers, as it would completely replace the existing charges.
The four per cent FOB levy, which is calculated based on the value of goods (including transportation costs up to the port of loading), is expected to enhance operational efficiency and trade compliance while funding the massive technological transformation required for the Customs service.
Adeniyi stressed that the B’Odogwu platform — an indigenous, fully digital customs management system — requires huge financial investment to achieve international trade standards.
“We have no choice in the payment of the 4% FOB because it is needed by the Customs to fund the huge technology and modernisation programme we have embarked upon. Technology does not come cheap, and in Yoruba parlance, ‘the soup that is sweet is as a result of money,’” he said.
The CGC also recalled that the late President Muhammadu Buhari had already approved the levy under the Customs Act of 2023, emphasising that the new fee structure aligns with global trade facilitation standards.
At the centre of this reform is the Unified Customs Management System (UCMS), popularly known as B’Odogwu. The platform integrates key customs functions such as:
Automated declaration processing
Risk management and duty calculation
Permit issuance and manifest handling
Real-time cargo tracking
The system is designed to ensure faster clearance, better revenue collection, and enhanced compliance with international trade standards. According to Adeniyi, over N300 billion has already been processed on the B’Odogwu platform since its pilot launch in November 2024, with over 90% stakeholder adoption.
Adeniyi, who also chairs the World Customs Organisation (WCO) Council, said the new technology would showcase Nigeria’s capacity to develop indigenous trade solutions:
“Now that we have the WCO Council Chairmanship, let us sell B’Odogwu to the world and prove that we have the capacity to develop our own technology to enhance operations and facilitate trade.”
While the 4% FOB levy is expected to replace existing fees without adding extra financial burdens, stakeholders at the meeting raised concerns about its immediate impact on trade costs. Adeniyi assured them that the Customs Service would maintain transparency and that there would be no further charges after the levy.
“This 4% FOB will replace the 1% CISS and the 7% collection from the Federation Account. Importers will not pay more than what they currently pay,” he said.
The new levy is part of a broader 20-year Customs Modernisation Programme, signed in 2023 with the Trade Modernisation Project (TMP) Ltd, to digitise and reform customs operations at ports, airports, and border posts.
The initiative aims to:
Improve trade facilitation and clearance time
Increase revenue collection
Enhance transparency and combat corruption within the system
With Nigeria recording over N204 billion in Customs revenue at the PTML Command alone in H1 2025, Adeniyi expressed confidence that the new measures will significantly boost national revenue while improving ease of doing business.
The NCS insists the transition to a 4% FOB levy is not just a revenue generation strategy but a necessary step to position Nigeria as a competitive player in global trade. If fully implemented, the reform could modernise customs operations, boost investor confidence, and enhance Nigeria’s standing in international commerce.