The Nigeria Customs Service (NCS) has announced plans to replace the current 7 per cent Customs collection fee and 1 percent Comprehensive Import Supervision Scheme (CISS) charge with a 4 per cent Free On Board (FOB) levy at the ports.
This strategic shift is part of efforts to fast-track the implementation of a world-class Customs modernisation programme through its new indigenously developed digital platform, the B’Odogwu Clearance System.
The Comptroller-General of Customs, Adewale Adeniyi, disclosed this on Monday at a stakeholders’ town hall meeting in Ikeja, Lagos, which brought together importers, freight forwarders, terminal operators, shipping lines, banks, and other players in the trade and logistics sector.
Adeniyi explained that the 4 per cent FOB levy — calculated based on the value of imported goods up to the port of loading — will serve as a replacement for both the 1 per cent CISS fee and the 7 per cent federation account collection, enabling a more efficient, transparent, and technology-driven clearance process.
He noted that the current NICIS II platform is being gradually phased out in favour of the Unified Customs Management System (UCMS), known as B’Odogwu, a fully digital platform aimed at streamlining operations and eliminating bottlenecks in Nigeria’s import and export processes.
“At the heart of our transformation is the B’Odogwu platform,” Adeniyi said. “We need sustainable funding to elevate it to global standards. That is why the 4 per cent FOB levy is being introduced — not to burden importers but to enable innovation and efficiency.”
He further emphasised that the Customs Service had already invested heavily in the system and that additional funding was necessary to complete the transition and sustain the reform.
Adeniyi appealed for the support and understanding of stakeholders, noting that such levies are standard practice in other countries where customs operations have been successfully modernised.
“The 4 per cent FOB is not arbitrary. It’s a necessary measure to ensure we can continue building a Customs service that meets international benchmarks and supports Nigeria’s economic growth,” he added.
”We have no choice in the payment of the 4 per cent FOB because it is needed by the Customs to fund the huge technology and modernisation programme it has embarked upon.
“The 4 per cent is not a new thing. God bless the soul of the late President Muhammadu Buhari, who saw the need for extra funding before the provision was included in the Customs Act of 2023.
“When we introduced this levy some months ago, we were asked to hold on and consult with our stakeholders.
“I am now telling you that we have no choice but to introduce the levy because technology does not come cheap, and in Yoruba parlance ‘the soup that is sweet is as a result of money,” he said.
He added that now that Nigeria is the Chairman of the WCO Council, the Nigeria Customs would use B’Odogwu to show the world that the Service has the capacity and competence to develop its own indigenous technology that will enhance its operations.
“Now it is going to be B’Odogwu to the world.
Now that we have the WCO Council Chairmanship with us, let’s use the opportunity to sell B’Odogwu to the world and tell them that we have the capacity and competence to develop our own technology to enhance our operations and facilitate trade,” he said.
He told the stakeholders that there would be no extra charges after the 4 percent FOB, as this would replace the 1per cent Comprehensive Import Supervision Scheme (CISS) and the 7 per cent they are collecting from the federation account.
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B’Odogwu integrates key customs functions like declaration processing, risk management, duty calculation, permit issuance, manifest handling, and cargo tracking all within one intelligent and centralised system.
This innovation empowers Customs officers, licensed agents, and government agencies with real-time access, automated workflows, and reliable data to ensure faster clearance, better revenue collection, and enhanced compliance with international trade standards
Adeniyi also clarified that the 4% FOB charge will replace the existing 1% Comprehensive Import Supervision Scheme (CISS) fee, without imposing additional burdens on importers.”
It was in 2023 that the federal government, through the Nigeria Customs Service (NCS), signed a 20-year Concession Agreement with Trade Modernisation Project (TMP) Ltd for the implementation of a world-class customs modernisation programme to boost trade at the port, airport and border stations across the country.