NASS orders Customs to begin immediate implementation of 4% FOB levy on imports

The Chairman of the National Assembly joint committee on Customs and Tariffs, Senator Isah Jibrin, has directed the Nigeria Customs Service to immediately commence the implementation of the 4 per cent Free-On-Board (FOB) charge as provided by the NCS Act 2023 to further its operations.

Recall that the NCS had suspended the implementation of the 4% FOB in February this year following public outcry and concerns from stakeholders who argued that the levy would increase the cost of imports and negatively impact the ease of doing business .

However speaking during a session with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun on Monday, Senator Jibrin questioned the delay in enforcing the FOB provision.

“Do we subject something that has been passed into law to further debate or defense?”, he queried, saying that “the 4 per cent be implemented immediately because it is law.”

Following his remarks, the motion was put to a voice vote and the committee unanimously supported the immediate enforcement of the FOB charge as enshrined in existing legislation.

The National Assembly also urged the finance minister to expedite the release and use of available funds for Customs modernization projects, particularly the N50 billion initiative awaiting Federal Executive Council (FEC) approval.

Meanwhile, the Federal Government has restated plans to implement the National Single Window, an initiative of the President Bola Tinubu’s administration to plug revenue leakages, enhance trade facilitation and improve efficiency in international trade transactions.

Edun disclosed while appearing before lawmakers.

Edun said, “Customs revenue is significant and remains a major contributor to the Federation Account for the benefit of both the federal and state governments.

“We are working towards achieving higher revenue through more efficient processes and by blocking loopholes and leakages.”