The Nigeria Customs Service (NCS) has announced the introduction of a 4 percent levy on the free-on-board (FOB) value of imported goods. The FOB value refers to the cost of goods and transportation expenses incurred up to the point of loading the goods onto the vessel at the port of departure. Under FOB terms, the seller is responsible for delivering the goods to the port, clearing them for export, and loading them onto the vessel. Once the goods are on board, the risk and associated costs transfer to the buyer.

In a statement issued on Wednesday, Abdullahi Maiwada, the NCS National Public Relations Officer, explained that the new levy is in line with Section 18 (1) of the Nigeria Customs Service Act (NCSA) 2023. He emphasized that the 4 percent FOB charge is crucial for ensuring the effective operation of the customs service.

Maiwada also addressed concerns raised by stakeholders regarding the continued collection of a 1 percent Comprehensive Import Supervision Scheme (CISS) fee. He clarified that the CISS fee is a regulatory charge designed to fund Nigeria’s Destination Inspection Scheme, which operates alongside the new 4 percent FOB levy.

Assuring the public of the NCS’s commitment to addressing stakeholder concerns, Maiwada stated that the service is actively engaging in consultations with the Federal Ministry of Finance to resolve any issues. He urged all stakeholders to comply with the new directive, which was developed following extensive consultations with industry players, importers, and regulatory bodies.