The Nigeria Customs Service (NCS) has announced its intention to reintroduce the 4% Free on Board (FOB) levy, which was previously suspended in February, as part of its strategy to sustainably fund its ongoing modernisation and technology upgrade programmes.
The disclosure was made during a stakeholder engagement session held on Monday in Ikeja, Lagos. The event, themed “Enhancing Trade Compliance and System Optimisation Through Stakeholder Engagement,” brought together industry participants to discuss the B’Odogwu clearance platform, its operational efficiencies and persistent constraints.
Addressing participants, the Comptroller-General of Customs, Adewale Adeniyi, stated that the reintroduction of the 4% FOB levy had become imperative to support the Service’s expanding digital infrastructure. He explained that the levy is backed by the Nigeria Customs Service Act 2023, which provides a legal framework for its application and use.
He clarified that the new levy structure will replace the existing 1% Comprehensive Import Supervision Scheme (CISS) and the 7% Cost of Collection currently imposed on imports. According to Adeniyi, this adjustment is intended to create a more streamlined and equitable framework for trade facilitation.
“The 4% FOB is not a new initiative. It is already provided for under the Customs Act 2023. When we initially introduced it, there were concerns raised by stakeholders, and we were asked to suspend it pending further consultation. Following this engagement and in view of the financial demands of our technology transformation programme, we are now proceeding with its reintroduction,” he said.
He added that revenue from the levy would be directed entirely towards supporting Customs’ modernisation agenda, which includes digital clearance systems, trade automation tools and data integration with partner agencies.
“Technology is critical to our operations and does not come cheaply. The levy provides a pathway to achieve our long-term vision of a fully modernised, responsive and efficient Customs Service,” he said.
Adeniyi also addressed the status of the B’Odogwu Clearance System, acknowledging improvements such as a user-friendly interface, enhanced digital tracking, faster processing of Form M, and data alignment with banking systems. He noted, however, that the system still faces challenges, including user adoption and integration with other regulatory platforms.
He urged the B’Odogwu implementation team to improve accessibility by localising technical language and providing clearer system guidance to end users. He pledged that stakeholder engagements would continue, with plans to hold similar sessions in the Eastern and Northern parts of the country.
In her remarks, Deputy Comptroller-General of Customs in charge of ICT and Modernisation, Kikelomo Adeola, described the stakeholder meeting as a strategic platform to align the expectations of trade partners with the capabilities of the B’Odogwu system. She noted that while the system has shown significant potential in cargo visibility, clearance efficiency, and revenue generation, continuous feedback reveals that some users still experience difficulties navigating its features.
She affirmed the Service’s commitment to ongoing dialogue and collaboration, and announced that post-engagement virtual workshops would be conducted to provide technical support to importers, customs agents, and brokers.
Chairman of the Trade Modernisation Project Limited, Saleh Ahmadu, also addressed participants, emphasising that the transformation of the Nigeria Customs Service into a 21st-century institution requires sustained investment in technology, personnel, and operational frameworks. He underscored the importance of stakeholder support in ensuring the long-term success of the B’Odogwu platform and related digital trade initiatives.
During panel discussions, stakeholders acknowledged the progress made through the B’Odogwu platform but raised concerns over several issues, including communication lapses, migration from NICIS II, limitations faced by banks in making amendments, and discrepancies in Harmonised System Code classification between regulatory agencies such as the Standards Organisation of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC).
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