COMMENCE COLLECTION OF 4% FOB IMMEDIATELY; 1% CISS, 7% CHARGES NOT BACKED BY LAW—NATIONAL ASSEMBLY CHARGES CUSTOMS
–directs customs to stop collection of 1% CISS, 7 % levies.
— queries Wale Edun over delay in Customs’ budget approvals
The joint committee on Customs and Tariff of the National Assembly has summoned the Minster of Finance and the Coordinating Minister of the Economy, Wale Edun and the Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi over the suspension of the 4 percent Free-on- Board (FOB) levy on imports.
It could be recalled that the Nigeria Customs Service introduced the collection of the levy in February, 2025 but hastily suspended its collection few days later due to the outrage it generated among the stakeholders. However, the National Assembly committee have now asked the Customs and its supervising Minister to come and explain the reason for the suspension.
The committee also frowned at the Minister of Finance over the delay in the approvals of Customs projects and what they described as ” abysmal performance of capital components of the 2025 budget of the Customs. The duo appeared before the committee on Monday, July 21st, 2025 at the committee room of the National Assembly.
The Chairman of the Joint committee on Customs and Tariff, Senator Isah Jubrin, asked the Minister to explain the reason why the 4 percent Free-on-Board (FOB) levy was suspended by the Customs despite the committee’s earlier resolution on the matter.
Senator Jubril was also crossed at the continued collection of the 1 percent CISS and the 7 per cent cost of collection by the Customs which he said are not backed by the Act of Parliament.
” We passed the resolution that the NCS should stop the collection of 1 percent CISS and 7 percent cost of collection as these collections are not backed by Act of Parliament.” he declared.
The Senator however ordered the Customs to immediately suspend the collection of these two charges but resume the collection of the 4 percent Free-on-Board (FOB)levy to fund its modernisation and digitization programmes.
Leke Abejide, Chairman, House of Representatives committee on Customs and Excise, reiterated the position of Senator Jubrin, asking the Customs to stop whatever they are collecting as the 7 per cent cost of collection and leave it for government to have more resources. He said henceforth, it is going to be “work and eat” arrangement for customs as it is what they get that they would spend.
” The Nigeria Customs Service is going to drop what they are taking from government money which is 7 per cent cost of collection and leave it for government to have more resources to use. “While they go and collect the 4 percent Free-on-Board (FOB) Levy . ” It’s what they work for, they get” declared Hon. Abejide.
The Committee therefore adopted a resolution on the matter. ” The collection of 4 percent Free-on-Board (FOB) levy is immediate as has been resolved here today. ” We also want a monthly report of the implementation of the FOB levy collection” Senator Jubrin declared.
The committee also queried Minister Edun on why he had to delay the release of funds to Customs to fund its capital projects which they viewed its performance in 2024 budget as not satisfactory. “Approvals are pending in his office (Minister) and some of the documents have been there since August, last year. ” Up till today, there has been no response from his office, we need to know why” Senator Jubrin accused the Minister, according to Eyewitness News.
However, Minister Edun explained that the Customs projects awaiting the approval of the Federal Executive Council(FEC) are not more than 10 and are worth about N500b which he said are not big enough to upset the capital projects execution of the Customs. ” The Customs projects that are awaiting FEC approval are approximately 10 worth N500 billion.
” I am not sure how that will actually move the needle” the Minister told the committee.
The Minister revealed that government would soon commence the implementation of National Single Window project which he said was one of the legacy projects of President Bola Ahmed Tinubu to enhance trade facilitation, port efficiency and revenue leakages.
” We shall soon implement one of the legacy projects of President Bola Ahmed Tinubu and that is the National Single Window (NSW). ” It will take care of trade facilitation, it will take care of Port community system and also take care of leakages in revenue and provide speed and efficiency to international trade transactions that will further complement others measures” revealed Mr Edun.
In another breath, CGC Adeniyi explained the status of rice importation to the committee.
” The status of rice is still that rice is not banned 100 percent. ” Importation of rice is only restricted. It is not allowed to be brought in to the country through the land borders” the CGC explained.