Photo caption: Nigeria customs service logo
The Nigerian Customs Service has said it plans to reintroduce the widely criticised mandatory payment of the four per cent Free-on-Board value on imports after extensive consultation with relevant stakeholders.
The Comptroller-General of Customs, Bashir Adeniyi, disclosed the figure during a press briefing to inform the public about the NCS activities in the first three months of 2025 on Tuesday in Abuja.
He also disclosed that the service has granted duty exemptions on essential food imports amounting to over N95.1bn between 2024 and the first quarter of 2025.
The CG said this move has significantly contributed to the recent drop in the prices of maize, rice, and sorghum across the country.
The PUNCH recalls that earlier this year, the NCS suspended the implementation of the widely criticised four per cent Free-on-Board value on imports.
The amount, as stipulated in Section 18(1)(a) of the Nigeria Customs Service Act 2023, raised concerns among businesses struggling with high operating costs.
The Customs National Public Relations Officer, Abdullahi Maiwada, who announced the suspension, said it presented an opportunity to review the service revenue framework holistically.
The Nigerian Employers Consultative Association had said the charges would impose an additional N2.84tn in the cost on businesses, worsening economic hardship.
The FOB charge, which is calculated based on the value of imported goods, including transportation costs up to the port of loading, means importers will pay more to bring goods into Nigeria, a cost that will likely be passed on to consumers.
But speaking at the briefing, the CG hinted that the policy would be reinstated, stressing the initial suspension was a challenge to the service operations within the review period.
He said the development created temporary operational adjustments for both the service and stakeholders.
He said, “Another significant challenge during the review period was the implementation and subsequent suspension of the Financial Customs Service Operation, also known as the four per cent FOB. This development created temporary operational adjustments for both the Service and our stakeholders.
“We will continue our consultations with our stakeholders to ensure that we sustain and reintroduce the suspended four per cent FOB.”
Another challenge was the volatility in the foreign exchange rate and implementation, which the CG said changed 62 times, impacting import duty prediction.
Continuing, Adeniyi revealed that the agency supported the government’s food security initiatives by implementing exemptions on imports of essential food items like maize, rice, and sorghum.
He stated that the initiative helped reduce prices between 12 to 18 per cent this year.
He said, “In line with the Federal Government’s efforts to address food security challenges, the service implemented exemptions on imports of essential food items like maize, rice, and sorghum. The NCS’s duty exemptions on food imports have contributed to recent food price reductions, with effects seen both immediately and over time.
“The Q1 2025 waivers on maize (N45.3bn FOB value), rice (N751.6m), and sorghum (N2.3bn) also contributed to lower prices by 12-18 per cent this year. At the same time, the larger exemptions from 2024 on rice (N45.9bn FOB) and wheat (N2.8bn) are now showing their full effect after taking time to work through the supply chain. This combination of current and past exemptions helps explain the steady improvement in food affordability.
“The 2024 measures initially faced delays in reaching markets but eventually increased supplies, while the 2025 waivers provided additional support. Together, these policies have helped stabilize prices by improving availability at different times, showing how customs adjustments can influence food costs both in the short term and over longer periods.
“The NBS price data reflects this pattern, where the benefits of duty relief emerge gradually but add up to make food more affordable.”
Meanwhile, the Federal Government is set to open talks with the United States Authorities to address the newly imposed 14 per cent reciprocal tariff on the country’s exports.
The CG said consultations among relevant Nigerian authorities, led by the Ministry of Industry, Trade and Investment, are already underway to shape the response.
Adeniyi explained that the government is navigating the tariff slam with a calm and strategic regional approach.
“We are working on a regional approach that addresses both Nigeria’s economic interests and broader trade dynamics. Stakeholders meeting has been called and is going to be held towards the end of this week,” he said.
He emphasised that while tariff structures vary across countries, Nigeria’s official response, expected in the coming days, would reflect consultations with stakeholders and align with its role as Chairman of the Economic Community of West African States.
