Nigeria Customs Overhauls Import Charges with Single 4% FOB Levy, Launches Digital Clearance Platform

 

The Nigeria Customs Service (NCS) has unveiled a major overhaul in its revenue collection strategy, replacing multiple import-related levies with a single, streamlined 4% Free On Board (FOB) charge. This announcement was made by Comptroller-General of Customs, Adewale Adeniyi, during a stakeholder town hall meeting held in Lagos on Monday, July 21, 2025.

At the center of this reform is the consolidation of existing charges into one unified tariff. This 4% FOB charge will replace the current 1% Comprehensive Import Supervision Scheme (CISS) and the 7% cost of collection levy imposed on importers. Once implemented, the new model will require importers to pay only the 4% FOB fee at the onset of their transaction, without facing any subsequent levies.

Speaking to a hall packed with freight forwarders, clearing agents, trade facilitators, and government representatives, CGC Adeniyi stated that the objective is to simplify the trade process and improve revenue transparency. He emphasized that the entire revenue generated from this streamlined charge will be directed into the Federation Account, aligning with the Federal Government’s broader fiscal reforms.

“The current system has too many moving parts, and this creates room for inefficiencies and delays,” Adeniyi remarked. “By adopting a single 4% FOB charge, we are taking significant steps toward making trade more predictable and less burdensome. The days of multiple deductions and complicated levy breakdowns are numbered.”

The reform coincides with the unveiling of the B’Odogwu clearance platform, a homegrown digital initiative intended to support modern customs operations and optimize cargo clearance. This platform is central to the NCS modernization plan, serving as a tool to drive efficiency, reduce corruption, and promote compliance through automation.

According to Deputy Comptroller-General in charge of ICT and Modernisation, Kikelomo Adeola, B’Odogwu represents a monumental step for Nigeria in achieving digital excellence in customs procedures. She noted the platform’s potential to place Nigeria at the forefront of digital customs innovation, particularly as the country currently chairs the World Customs Organisation (WCO).

“B’Odogwu is not just a digital tool; it is a national project that will revolutionize how we engage with trade stakeholders,” Adeola declared. “We are committed to building the digital backbone that will support seamless, secure, and transparent clearance processes.”

Participants at the town hall expressed cautious optimism about the reforms. While many commended the simplification of tariffs, concerns were raised about potential delays during the transition phase, especially with regard to banking systems and documentation alignment.

Saleh Ahmadu, Chairman of Trade Modernisation Project Limited (TMPL), assured attendees that adequate infrastructure and support mechanisms were being rolled out in tandem with the policy. He reinforced the importance of stakeholder input in ensuring a smooth implementation.

“Stakeholders are not bystanders in this journey. Their insights are critical, and we’re building a system that listens, learns, and evolves,” Ahmadu said.

The town hall, themed “Enhancing Trade Compliance and System Optimisation Through Stakeholder Engagement”, featured interactive sessions and panel discussions. Key sessions focused on topics such as “Overcoming Common Importer Challenges on B’Odogwu” and “Enhancing Transparency, Speed and Revenue through Full Participation.” The event also included a robust question-and-answer segment, where participants sought clarity on operational details and raised technical concerns.

Trade experts and customs officials agreed that the transition to a single 4% FOB charge represents more than just a financial adjustment. It marks a broader shift toward transparency, accountability, and competitiveness in Nigeria’s trade environment. With the elimination of multiple overlapping fees, the government hopes to make Nigerian ports more attractive to global trade partners and investors.

The anticipated impact of the reform includes a significant reduction in operational complexities, improved compliance rates, and enhanced revenue collection efficiency. Moreover, the move is expected to position Nigeria more favorably in global trade facilitation indices, boosting its appeal in regional and international trade networks.

By harmonizing levies and embracing technology-driven solutions like B’Odogwu, the Nigeria Customs Service aims to foster a business-friendly environment and support national economic growth through smarter, simpler, and more transparent trade processes.