The Nigeria Customs Service (NCS) has announced plans to replace the current seven per cent Customs collection fee and one per cent Comprehensive Import Supervision Scheme (CISS) charge with a four per cent Free On Board (FOB) levy at the ports.
This strategic shift is part of efforts to fast-track the implementation of Customs modernisation programme through its new indigenously developed digital platform, the B’Odogwu Clearance System.
The comptroller general of Customs, Adewale Adeniyi, who disclosed this in Lagos, explained that the four per cent FOB levy — calculated based on the value of imported goods up to the port of loading — will replace both the one per cent CISS fee and the seven per cent federation account collection, enabling a more efficient, transparent, and technology-driven clearance process.
He noted that the current NICIS II platform was being gradually phased out in favour of the Unified Customs Management System (UCMS), known as B’Odogwu. This fully digital platform aims to streamline operations and eliminate bottlenecks in Nigeria’s import and export processes.
“At the heart of our transformation is the B’Odogwu platform. “We need sustainable funding to elevate it to global standards. That is why the 4 per cent FOB levy is being introduced — not to burden importers but to enable innovation and efficiency.”
He further emphasised that the Customs Service had already invested heavily in the system and that additional funding was necessary to complete the transition and sustain the reform.
Adeniyi appealed for the support and understanding of stakeholders, noting that such levies are standard practice in other countries where Customs operations have been successfully modernised.
“The four per cent FOB is not arbitrary. It’s necessary to ensure we can continue building a Customs service that meets international benchmarks and supports Nigeria’s economic growth,” he added.
” We have no choice but to pay the four per cent FOB because Customs needs to fund the vast technology and modernisation programme it has embarked upon.
“The four per cent is not a new thing. God bless the soul of the late President Muhammadu Buhari, who saw the need for extra funding before the provision was included in the Customs Act of 2023. When we introduced this levy some months ago, we were asked to hold on and consult with our stakeholders.
“I am now telling you that we have no choice but to introduce the levy because technology does not come cheap, and in Yoruba parlance ‘the soup that is sweet is as a result of money,” he said.
He added that now that Nigeria is the Chairman of the WCO Council, the Nigeria Customs would use B’Odogwu to show the world that the Service had the capacity and competence to develop its indigenous technology that will enhance its operations.
“Now it is going to be B’Odogwu to the world. Now that we have the WCO Council Chairmanship with us, let’s use the opportunity to sell B’Odogwu to the world and tell them that we have the capacity and competence to develop our technology to enhance our operations and facilitate trade,” he said.
He told the stakeholders that there would be no extra charges after the 4 per cent FOB, as this would replace the one per cent Comprehensive Import Supervision Scheme (CISS) and the 7 per cent they are collecting from the federation account.
Adeniyi also clarified that the one per cent FOB charge will replace the existing one per cent Comprehensive Import Supervision Scheme (CISS) fee, without imposing additional burdens on importers.”
