 has unveiled plans to implement a new 4 percent Free On Board (FOB) levy on imported goods, effectively){kind=link}
The Nigeria Customs Service (NCS) has unveiled plans to implement a new 4 percent Free On Board (FOB) levy on imported goods, effectively replacing two existing charges — the 7 percent collection fee from the federation account and the 1 percent Comprehensive Import Supervision Scheme (CISS) fee.
This announcement was made by the Comptroller-General of Customs, Adewale Adeniyi, during a high-level stakeholders’ town hall meeting held in Ikeja, Lagos.
The meeting, which brought together importers, freight forwarders, terminal operators, shipping companies, banks, and other key industry players, focused on proposed reforms aimed at enhancing trade compliance, boosting clearance efficiency, and integrating advanced technology in customs processes.
The CISS fee, which the new levy is set to replace, has traditionally covered pre-shipment inspection services for imported goods. On the other hand, the proposed 4 percent FOB levy is calculated based on the total value of imported goods, inclusive of transportation costs up to the port of loading — a shift designed to streamline customs revenue collection and eliminate duplicative charges.
According to Adeniyi, the introduction of the 4 percent FOB levy is a strategic step towards financing the service’s modernization drive, particularly the development and implementation of the Unified Customs Management System (UCMS), also known as B’Odogwu.
He explained that this indigenous digital platform aims to overhaul and digitize the entire customs process — reducing bottlenecks, ensuring transparency, and aligning Nigeria’s import and export systems with global best practices.
“The Unified Customs Management System (UCMS), or B’Odogwu, is our homegrown digital solution that will replace the NICIS II platform,” Adeniyi said. “Transitioning to this new system requires heavy investment to meet global operational standards.”
He stressed that the 4 percent FOB levy is not an additional charge but a replacement for the existing ones. “There will be no extra fees beyond the 4 percent. It fully absorbs the 1 percent CISS and the 7 percent federation collection,” he reassured stakeholders.
The levy was initially announced on February 4, but its implementation was temporarily suspended to allow for broader stakeholder engagement. Now, following consultations, Adeniyi stated that the service has no alternative but to proceed with its enforcement.
“We must understand that modern technology comes at a cost. As we say in Yoruba, ‘the soup that is sweet is made with money,’” he added. “We’ve consulted, we’ve listened, and now we must act.”
Adeniyi further highlighted Nigeria’s influential position in the global customs community. As the current chair of the World Customs Organization (WCO) Council, Nigeria is strategically placed to showcase its innovations.
“We must take this opportunity to introduce B’Odogwu to the world. Our chairmanship should be leveraged to demonstrate that Nigeria has both the capacity and the ingenuity to drive technological transformation in customs operations,” he asserted.
While many stakeholders welcomed the simplification of fees under a unified levy system, some expressed concerns about potential delays during the system transition, particularly in areas involving banking processes and documentation. The customs chief acknowledged these concerns and assured participants that implementation strategies would be carefully managed to minimize disruptions.