The Nigeria Customs Service (NCS) has announced plans to reintroduce the controversial four per cent Free-on-Board (FOB) value levy on imports, following broad stakeholder consultations. The Comptroller-General of Customs, Bashir Adeniyi, made this known during a press conference highlighting the NCS’s activities in Q1 2025. The FOB policy, suspended earlier this year due to widespread criticism, is being reconsidered despite concerns it could escalate costs for importers and consumers. Adeniyi acknowledged the temporary operational disruptions caused by the policy’s suspension and said the agency is working to reimplement the charge without severely impacting business operations.
Originally shelved after backlash from the business community and groups like the Nigerian Employers Consultative Association—which projected an added N2.84 trillion cost—the four per cent FOB fee has remained contentious. This charge, based on the value of goods including transport to the port of loading, increases importation costs. Customs officials say the reintroduction will be done thoughtfully, after further dialogue with trade stakeholders. Adeniyi noted that while the policy was problematic during its trial phase, its absence also created operational challenges for Customs and importers alike.
Alongside the policy update, the NCS shared progress on duty exemptions designed to support food security. Between 2024 and Q1 2025, duty waivers worth over N95.1 billion were granted on essential food imports like rice, maize, and sorghum. The CG reported that these measures contributed to recent food price drops of 12 to 18 per cent nationwide. He explained that the combination of past and present exemptions played a significant role in easing supply chain delays and improving market availability, which has positively impacted affordability over time.
In a related development, the Federal Government is preparing to engage with the United States over a new 14 per cent reciprocal tariff on Nigerian exports. The Ministry of Industry, Trade and Investment is leading these talks, with Customs and other relevant bodies collaborating to craft a coordinated response. Adeniyi emphasized that Nigeria is pursuing a regional strategy that balances national interests and West African trade goals. As Chairman of ECOWAS, Nigeria’s approach will be both diplomatic and strategic, with stakeholder meetings scheduled to shape the official position in the coming days.
Source: Punch