February 13, 2025
The Nigeria Customs Service, NCS, Kano/Jigawa Customs Area Command, on Wednesday held a stakeholders’ meeting to explain the four percent free on board, FOB, collection and its suspension.
Kano/Jigawa Customs Area Comptroller, Dalhatu Abubakar, stated that the new revenue law would benefits all stakeholders, including exporters, importers, and customs agents.
Abubakar, explained that the FOB collection had been temporarily suspended due to the termination of the Nigeria Customs Service, NCS contract with service providers and assured that the NCS would resume direct collection of the four percent FOB once the suspension is lifted.
“The FOB collection suspension is due to the termination of our contract with service providers.” He said.
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“We are engaging stakeholders during this period to raise awareness about the levy’s importance,” noting that the suspension aligns with the NCS’s efforts to transition to direct levy collection by the service.
He emphasized that the suspension period would enable the NCS to educate stakeholders on the necessity of the four percent FOB, legally backed by Section 18(1) of the NCS Act (2023).
“This engagement is ongoing, and we will invite you again in the coming weeks to further explain the levy’s purpose and significance,” Abubakar stated.
He went further to say that the four percent FOB, which is also known as the Financial Customs Service Operation (FCSO), is essential for NCS operations and stakeholder interactions. .
While Stakeholders at the meeting were educated on the legal basis and benefits of the FOB, some of those present, expressed concerns about the additional financial burden the FOB places on Nigerians.
