Nigeria Customs Imposes 4% FOB Import Charge: What You Need to Know

The Nigeria Customs Service (NCS) has introduced a 4% charge on the Free On-Board (FOB) value of imports, effective immediately. This move is in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023 ¹.

How the FOB Charge Works

The FOB charge is calculated based on the value of imported goods, including the cost of goods and transportation expenses incurred up to the port of loading. This charge is essential to driving the effective operation of the NCS ¹.

Impact on Importers and Consumers

The introduction of the FOB charge is expected to increase the cost of importing goods into Nigeria. Importers will pay more to bring goods into the country, and this cost may be passed on to consumers. For example, a car valued at N30 million will attract an additional N1.2 million in FOB charges, which will increase the overall cost of importing the vehicle

Other Charges Still Apply

The NCS has also clarified that the 1% Comprehensive Import Supervision Scheme (CISS) fee will still be collected alongside the FOB charge. The CISS fee is a regulatory charge used to fund Nigeria’s Destination Inspection Scheme ¹.

Stakeholder Concerns

The introduction of the FOB charge has raised concerns among stakeholders, who are worried about the increased financial burden on importers. However, the NCS has assured that extensive consultation is ongoing with the Federal Ministry of Finance to address all concerns raised by stakeholders ¹.

In conclusion, the introduction of the FOB charge is a significant development in Nigeria’s import regulations. While it may increase the cost of importing goods, it is essential to ensure the effective operation of the NCS. Importers and consumers must be aware of this change and factor it into their business decisions.