With the Nigeria Customs Service (NCS) having announced the suspension of the 4% Free-on-Board (FOB) value on imports, on Tuesday ,11th February , 2025, as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023, Chief Osita Chukwu, Save Nigeria Freight Forwarders, Importers and Exporters Coalition (SNFFIEC) has condemned it's suspension, urging the Federal Government to scrape the 4% FOB entirely noting that it will help to ease the suffering of Nigerians.
This decision comes after ongoing consultations with the Honourable Minister of Finance, Mr. Olawale Edun, and other stakeholders.
Speaking with some group of journalist on Wednesday at his Apapa office, Lagos, Chief Chukwu vehemently condemned the trade regime which he refers to as " Wicked and Heartless", considering what the ordinary Nigerians are currently passing through in the hands of government.
He lamented a situation where government and politicians do not mind using what is left of the Nigerians in their quest to increase Customs revenue target designed to satisfy their personal whims and caprices. As a result of crushing rates and duties that human face, he regretted that major importers are being pushed out of business as a result of high tariff.
According to the press statement made available to newsmen recently through the National Public Relations Officer, AC Abdulahi Maiwada, stated that the suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework. Notably, the timing of this suspension aligns with the exit of the contract agreement with service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).
The NCS aims to review its revenue framework holistically during this transition period.
Under the previous funding arrangement repealed by the NCSA 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs modernisation efforts. The new Act addresses these challenges by consolidating “not less than 4% of the Free-on-Board value of imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives. This transition period will allow the Service to optimise the management of these frameworks to serve our stakeholders and the nation’s interests better.
Chief Chukwu lamented the economic hardship Nigerians are facing now,
He wondered why anybody would want to put additional burdens on Nigerians whose economic fortunes have plummeted, vehemently opposed the suspension for further consultations, saying that the levy should be outrightly scrapped".
Describing the current CGC as an acclaimed public relations guru, Chief Chukwu said he should have been in a better position to feel the pulse of the people and to know the consequences of implementing such a hike in levy at this moment in time, adding that he should have advised the government earlier for a reversal to the old rate.
He berated the Minister of Finance and Coordinating Minister for the Economy, Mr. Olawale Edun and the Comptroller General of Customs Adewale Adeniyi MFR, for their failure to give quality advice to the government as he called for their resignation.
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