On Tuesday, the Nigeria Customs Service (NCS) announced a temporary suspension of the implementation of the four percent levy on the Free On-Board (FOB) value of imports.
Abdullahi Maiwada, the spokesman for the service, communicated this development in a statement issued from Abuja.
The suspension aims to facilitate comprehensive stakeholder engagement and consultations regarding the framework for implementing this levy. It is noteworthy that the NCS previously announced, on February 5, the intention to impose a 4 percent charge on the FOB value of imports.
This announcement faced significant criticism from various private sector operators, including the Manufacturers Association of Nigeria and the Lagos Chamber of Commerce and Industry, who expressed concerns regarding the potential negative impact on trade facilitation and the overall port system.
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Dr. Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry, emphasized that the unilateral decision to implement the levy was abrupt and did not adequately involve necessary consultations with stakeholders, as stipulated by the provisions of the Nigeria Customs Service Act 2023.
Mr. Maiwada further indicated that the suspension period will be utilized to foster dialogue with stakeholders, ensuring alignment with the Act’s provisions and promoting the sustainable funding of NCS modernization initiatives.
A revised implementation timeline will be communicated following the completion of these consultations.