It has been acknowledged by the Nigeria Customs Service (NCS) that the Federal Ministry of Finance has ordered the suspension of the 4% Free-on-Board (FOB) tax on imported goods. The Service is dedicated to supporting government fiscal policies and values the Ministry’s involvement in this issue. Following this directive, the Service has started consulting with the Ministry in charge of supervision right away to get advice on how to continue providing services to all parties involved during this suspension. In order to resolve the issues brought up and guarantee that the Service’s statutory duties are successfully fulfilled, the NCS is hopeful that further talks with the Federal Ministry of Finance and other pertinent parties will continue. We look forward to constructive engagement that will ultimately serve the best interests of the Federal Republic of Nigeria, enhance revenue generation, and support the nation’s economic growth objectives through efficient customs administration. It is also necessary to draw attention to ongoing media reports suggesting that the Service introduced the 4% FOB only recently. For clarity, the Service wishes to emphasise that the National Assembly established the 4% FOB provision through Section 18(1)(a) of the Nigeria Customs Service Act, 2023, which stipulates “not less than 4% of the free-on-board value of imports according to international best practices” as a statutory funding mechanism for the Service’s operations. The Service assures all stakeholders, including the trading public, licensed customs agents, and international partners, that our operations will continue without any disruption. Our commitment to providing effective service, adhering to global best practices, and bolstering Nigeria’s economic development via efficient revenue collection and improved trade facilitation remains unwavering.
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