The Nigeria Customs Service (NCS) and the Federal Ministry of Finance (FMF) have begun consultation in order to address the issues raised by stakeholders on the four per cent charge on Free on Board (FOB) and the collection of one per cent Comprehensive Import Supervision Scheme (CISS) fee.
The NCS National Public Relations Officer, Assistant Comptroller General of Customs, Abdullahi Maiwada made this known in a press release yesterday.
While acknowledging stakeholder concerns over additional import charges, the agency insists that the levy is necessary to enhance revenue generation and improve customs operations.
He said: “Furthermore, the NCS acknowledges concerns raised by stakeholders over the sustained collection of one per cent Comprehensive Import Supervision Scheme (CISS) fee.
It is a regulatory charge imposed for funding Nigeria’s Destination Inspection Scheme alongside the four per cent FOB charge.
“As a responsive and responsible government agency, the Service wishes to assure the general public that extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders.”
He acknowledged the invaluable contributions of stakeholders in shaping and actualising the Nigeria Customs Service Act (NCSA) 2023.
According to him, the landmark legislation, which replaces the long-standing Customs and Excise Management Act (CEMA) and other related laws, is a product of extensive consultations, constructive dialogue, and collaborative efforts with key industry players, government agencies, and other stakeholders.
To ensure compliance and clarity on the implementation process, the Service has also issued a directive (Circular No. FATS/DCG/2025/01) mandating all Customs Area Controllers to actively engage stakeholders through sensitisation programmes, workshops, and meetings.
He added that their insights, expertise, and unwavering commitment have been instrumental in ensuring a robust legal framework that enhances efficiency, promotes innovation and strengthens transparency in customs operations.
He explained that in line with the provisions of Section 18 (1) of NCSA 2023, the NCS is implementing a four per cent charge on the Free On-Board (FOB) value of imports.
Maiwada further noted that the FOB charge, which is calculated based on the value of imported goods, including cost of goods and transportation expenses incurred up to the port of loading, is essential to driving the effective operation of the Service.
The National Public Relations Officer said under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi, the NCS reaffirms its commitment to transparency, fair trade practices, and efficient revenue management.
He urged stakeholders to support this legally binding initiative, as the measures introduced in alignment with the NCSA 2023 reflect a balanced approach born out of extensive consultations with industry players, importers, and regulatory bodies.
Customs reaffirms implementation of four per cent FOB levy
However, importers and business operators have raised concerns about the simultaneous collection of the 1 per cent Comprehensive Import Supervision Scheme (CISS) fee alongside the 4 per cent FOB levy. In response, the NCS assured stakeholders that discussions were ongoing with the Federal Ministry of Finance to address their grievances.
Despite concerns from stakeholders, Customs has urged importers and businesses to support the policy, noting that it aligns with global best practices in trade facilitation and customs revenue management.
“Your cooperation in this regard is essential for the successful implementation of this directive. Kindly ensure strict compliance and provide periodic updates on the level of stakeholder engagement and compliance rates,” the circular, signed by Customs Deputy Comptroller-General of Finance, Administration, and Technical Services, BM Jibo, stated.
Meanwhile, Head of Research at Sea Empowerment & Research Center (SEREC), Eugene Nweke, has voiced concern over the “NCS’s deviation from the legal provision by applying the charge on the Cost, Insurance, and Freight (CIF) value instead of the FOB value”.
In his analysis, Nweke highlighted that Part V, Section 18 of the Nigeria Customs Service Act 2023 explicitly states that the NCS shall maintain accounts funded by, among other sources, “not less than 4 percent of the FOB value of imports.” However, the recent imposition of the charge on the CIF value which includes insurance and freight costs has created operational bottlenecks and economic strain.
According to Nweke, customs duties and related charges are traditionally calculated based on FOB values globally. He warned that Nigeria’s shift to CIF-based charges contradicts established trade norms and could result in double taxation, increased costs, and reduced competitiveness for Nigerian businesses.
He said: “The imposition of a 4 per cent charge on CIF instead of FOB is not ideal and unprofessional. This practice inflates import costs, contradicting international best practices and could discourage investors and traders from routing shipments through Nigerian ports.”
The seasoned freight forwarding expert further criticised the “lack of stakeholder engagement” and transparency in the decision, stating that the NCS implemented the fee “without prior notification or a formal circular” to guide industry players.
Nweke highlighted that the sudden implementation of the four per cent charge has left many consignments stranded at ports, as importers struggle to adjust to the unexpected financial burden. The lack of prior notice, he indicated, has caused confusion, slowing down clearance processes and increasing the risk of port congestion.
He warned that the additional cost would likely be passed on to consumers, further driving up the prices of goods in an already inflationary economy. Moreover, traders facing higher import expenses may resort to informal routes to evade the charge, leading to potential revenue losses for the government and a rise in smuggling activities.
Beyond the financial implications, Nweke stressed that the policy’s abrupt introduction could harm Nigeria’s trade reputation.
“The lack of transparency and stakeholder engagement may discourage foreign investors and push businesses to seek alternative trade routes, weakening the country’s competitiveness in the global market,” he stated.
In light of these challenges, Nweke urged the Nigeria Customs Service (NCS) to take immediate corrective measures to align with the legal framework. He emphasized the need for the NCS to “clarify the implementation” of the 4 per cent charge by explicitly stating its basis and ensuring that it is applied to the Free-on-Board (FOB) value of imports, as stipulated by law.
Additionally, he called for the issuance of a “formal circular” to inform importers, clearing agents, and customs brokers about the correct procedure, ensuring transparency and compliance. Furthermore, Nweke stressed the importance of “stakeholder engagement”, advocating for continuous dialogue with traders, freight forwarders, and industry associations. According to him, such engagement would prevent policy missteps that could disrupt trade, increase costs, and undermine Nigeria’s competitiveness in global commerce.
He also questioned the rationale behind collecting both the four per cent FCS charge and the 1 per cent Comprehensive Inspection Service Scheme (CISS) fee, both of which are intended to fund customs operations.
“Charging 4 per cent for customs financing and one per cent for inspection services simultaneously is excessive and contradicts fair trade policies,” he remarked.
