ANLCA ready for 4% FOB levy, lack of engagement fuelled initial rejection- Oduntan

As the Nigeria Customs Service (NCS) prepares for implementation of the 4% Free on Board (FOB) levy on imports, the Association of Nigerian Licensed Customs Agents (ANLCA) has expressed its readiness to comply with the policy.

In this interview with journalists in Apapa on Monday, ANLCA’s Vice President, Prince Segun Oduntan said the initial rejection of the levy by clearing agents stemmed from a lack of clear communication and engagement from Customs.

He explained that agents weren’t initially aware that the 4 percent FOB would replace the existing 1% Comprehensive Import Supervision Scheme ( CISS)  and 7% fee from the federation account.

He said with the Comptroller General of Customs now confirming the abolition of these other charges, ANLCA is fully prepared to support the impending collection of the 4% FOB levy.

Oduntan also clarifies misunderstandings surrounding the 846 vehicle valuation code.

On the controversy surrounding the collection of the Practitioner Operating Fee ( POF) by CRFFN, Oduntan berated the Council’s management and the consultant, SW Global for failing to account for total amount collected under the POF. He said following the court judgement halting the POF collection, only a few clearing agents are still paying the fee. 

Shulammite Olowofoyeku was there for Maritime Today online. 

Read the full interview below.

Excerpts:

We heard that Customs recently suspended the use of the 846 code for vehicle valuation due to alleged abuse. What’s the current situation with vehicle clearance?

There’s no abuse in the system. The circular Customs issued was merely a reminder. What actually happened isn’t a suspension; it’s simply that vehicles with standard Vehicle Identification Numbers (VINs) must not be cleared using the 846 code. Vehicles without standard VINs will still be processed using the 846 code.
The clarification is essentially a reawakening for people, as some vehicles haven’t yet been accommodated into the standard VIN system. Those specific vehicles will continue to utilize the 846 code. It seems that some individuals are misinterpreting information and misinforming the public. The 846 system has not been suspended. According to the Customs circular, vehicles with standard VINs should not be cleared using an additional code. The special procedure, the 846 code, was specifically designed to facilitate the clearance of vehicles without standard VINs.

Perhaps there might have been one or two instances of abuse, where the code was used for vehicles with standard VINs. It’s possible for someone to violate the rule, but I expect the NCS to take action on such cases because the code is an internal arrangement by the NCS. Overall, the 846 code is still applicable, but not for all vehicle imports.

Recently, the Customs management announced the reintroduction of the 4% FOB levy. As the Vice President of ANLCA, what’s the mood of your members and the industry in general, especially given that two other levies – the 7% levy and the 1% CISS levy – have been removed in lieu of the 4% payment?

You know, many things happen in Nigeria, and sometimes we get carried away without doing our research to understand the underlying reasons for certain policies. Let me give you an example: it was only when a lawyer, Adegoruwa, challenged the Lagos environmental law in court that we discovered it hadn’t been gazetted, which led to the cancellation of our monthly “stay-at-home” Saturdays.
The same situation applied to the 1% CISS and 7% charge; they were not backed by law. So, the Customs were simply bamboozling us and collecting that money for a long time.

Why did we initially oppose the 4% when it was introduced? It was because there was no proper engagement. They simply woke up one day and introduced a 4% levy. Even though we knew it was backed by law, we perceived it as an additional payment. But with the pronouncement by the Customs CG that the original 1% CISS and 7% charges were not legally supported and will ceased that’s why you don’t see much opposition to the 4% now.

While some levies had to make way for the 4% levy, proper information dissemination and engagement are crucial. You can see that even before reintroducing it this time, Customs has been actively engaging stakeholders and discussing it. So, people have now taken the initiative to research and properly inform themselves about some of these policies to avoid illegal surcharges.

The same scenario is playing out in our regulatory body, CRFFN. Some people have been paying the Practitioner Operating Fee (POF) for years. Even as a declarant, I have a percentage I have contributed since inception of the payment but we don’t know the recipient of these payments. The Registrar even admitted they don’t know the total amount collected.
So, how do I get my share when the person in charge can’t account for the total collection? And we have the first, second, and third CRFFN registrars all still alive.

For anyone to misappropriate funds in today’s Nigeria, they must be prepared, because people are ready to conduct in-depth research and take appropriate court actions into these illegal charges.

What level of compliance are you expecting with the implementation of the 4 percent FOB? 

There’s no question of varying compliance levels. It will be 100% compliant once implementation begins. You have to pay. We’ve been paying the 1% and 7% all along. So, there won’t be 99% compliance; it will be 100%.

ANLCA was recently involved in discussions about the National Single Window, and just a few days later, the Presidency announced its implementation for the first quarter of 2026. How prepared are your members and the freight industry for the commencement of this important policy?

We are very prepared because it will make our job much easier. It means we can operate more from the comfort of our offices, so we are well-prepared. Issues where agencies like SON or NAFDAC block Bills of Lading or take samples will no longer arise because everyone will be integrated into the system and can see what’s happening.
However, the problem has always been inter-agency competition. While Customs is advancing and transforming it’s modernization , cargo clearance is a process. If you’re running and others are pulling you back, you can’t reach your destination. You can only say you’ve fully cleared your goods and can use them when they are delivered to your warehouse or store.

Customs is implementing initiatives like Authorized Economic Operator (AEO) and B’Odogwu to simplify the process, as the Comptroller General mentioned last week. But then, SON claimed that B’Odogwu doesn’t allow them into the system, and that people are presenting fake SON certificates, leading to substandard products flooding the market. What have they been waiting for all this while? Why don’t they integrate?
Don’t all these agencies receive subvention from the government? And they still collect revenue. If Customs is upgrading, why haven’t they been able to keep pace? If we truly want this system to work, all agencies need to be on the same level as Customs.

If Customs is trying to do all this, they are just one leg of the clearance chain. The other legs are not on the same page with them. So, the National Revenue Service, which is trying to bring all the agencies together and integrate them on a single window, will lead to more revenue and smoother operations.

Given our history, for instance, with streamlining agencies entering the port do you think the federal government has the political will to follow through with the implementation timetable for the National Single Window?

Yes, I believe the government can pull it through if they genuinely commit to it.

What’s the update on B’Odogwu, especially with Customs’ promise to address some identified challenges?

The only issue with B’Odogwu was regarding the old jobs – the transmission of old Pre-Arrival Assessment Reports (PAARs) and old Form ‘M’ to the new platform, which caused initial hiccups. That has been addressed, and it’s running perfectly now.

How about the migration from NICIS?

Initially, there were hiccups because it was centrally controlled in Abuja for security purposes. But now, about three to five members of the B’Odogwu team have been deployed to every command. So, the backlog is being cleared much faster.

Just last week, Seme Customs said it intercepted five trucks of rice. What is the rationale behind the continued ban on rice coming from the border? Don’t you see the need for the government to lift the restriction after so many years?

I believe the government has its reasons. We have discussed it with them. But you know, the border isn’t just about rice; it’s primarily about security. That is the topmost concern, not just food. The government’s response is that the ban has yielded more benefits than drawbacks when you weigh its advantages. So, it has to do with the security of the country. We don’t want it to seem like we prioritize trade over human lives, because that’s where various threats enter the country. Even though some goods are still smuggled in, the government will tell you it’s still limited compared to allowing an open border where we wouldn’t be able to control anything. So, it has to do with the security of the country. And anything that concerns security is the prerogative of the government to address.

There were news reports that Russia and China have signed an agreement with the Lomé ports for a technical partnership. Here, Nigeria is supposed to be the giant of Africa, yet we have very important economies hobnobbing with smaller neighboring countries instead of Nigeria.What appears to be wrong with our ports?

What’s wrong with our system? China and Russia signed an agreement with Lomé ports. So, you’ve never heard about Nigeria and China partnership?

You’ve never heard about the agency in charge of Nigeria and China’s business relationship? The Lekki port, you don’t know it’s a partnership between Nigeria and China?

I ask that question bearing in mind that possibly 70% of the goods that will be landed in Lomé port will be destined for the Nigerian market, because that has been the trend.

That was before, not now. We have trucks loaded with goods every day heading to Ghana and Sierra Leone. This is not hearsay; it’s something I know and have seen. Nigeria is our home. It’s our country. We don’t have any other one. We just have to continue to encourage it to grow. The Nigerian free trade zones—in Ogun, Calabar, Lekki—if you’ve visited any of them, you would have seen industries, manufacturers being given incentives to come here, produce, and expand. And whatever they are producing there, they are bringing out, they pay their duty, and they sell it. So, that’s it. It’s not true that we don’t have a relationship with China. We have a good relationship with them. So, the assertion that all goods being shipped to Lomé will find their way to Nigeria, I don’t agree with that.

Let’s look at the controversies surrounding the POF collection. ANLCA and three other groups recently expressed their support for the court judgment banning the collection of the POF from customs agents. Do you think these back-and-forth developments are helping the port economy?

CRFFN receives subvention from the government. We also pay annually. And we still pay for every single job we handle. If I clear 10 containers now, I will pay N2,000 multiplied by the number of containers.
What is it about POF? Is it the only thing the CRFFN can do? Is it the only thing they are after? Is that the fundamental reason for their founding and establishment? I don’t understand it. Why is the POF issue brought up repeatedly, only for it to be bastardized in the end? In today’s Nigeria, even in your community association, would someone just bring in a consultant without anyone knowing, and that person collects all your money without accountability? Who is this faceless consultant, SW Global? They can’t unravel it; they can’t tell us how much they’ve been collecting even from us declarants. In the first place, are we even supposed to be under the Ministry of Transport? Are we? Who licensed us? Isn’t it Customs? Customs is under the Ministry of Finance.
So, just because we operate in the maritime sector, does that mean everyone must regulate us? Customs collects fees every year. The Ministry of Transport collects fees on every job. Who is encouraging CRFFN? Isn’t it the Ministry of Transport? They have their people in the Council. Is that how it’s supposed to be? That’s why you see that the CRFFN cannot function. As long as the Ministry still has its hand in it, people just go there, collect sitting allowances, and go home. No meaningful contribution because they lack experience.
Is the Minister not seeing what is happening? It was the same when Amaechi was there; it’s just about POF. It’s only the money they are interested in, and that money is going somewhere you and I don’t know. As of today, from inception of POF payments, I have over 15 million to collect as a declarant. Let us have the audits, because the Act also stipulates the sharing formula among the registered associations, yet the Registrar is asking for collaboration. What collaboration can we give him? What will those we are representing say? That we are conniving with them?

So, as it stands now, pending the appeal, will you still continue to pay the POF?

You see, the problem is that we need to speak with one voice. Until we speak with one voice, we will continue to have problems. That’s why we can’t get clarity. There’s no central leadership to drive it for us. That is the problem. If an association issues a directive, we have to obey the court of law. We have to obey the court judgment. But funny enough, CRFFN immediately wrote to terminal operators, instructing them to ignore the court order because they had appealed the judgment. So, the level of compliance is what we are waiting for; however, some have stopped the POF payment in obedience to the court order.