Customs Begins Enforcement of 4% FOB Levy Amid Continued 7% Surcharge at Ports

Editor’s Note: This article was originally written on August 27, 2025 and is being republished here for archival purposes.

Introduction

On Monday, August 4, 2025, the Nigeria Customs Service (NCS) officially began collecting the 4% Free On Board (FOB) levy on imported goods at seaports, marking a significant fiscal policy shift in import duty collection. While this levy is intended to replace two earlier charges—the 1% Comprehensive Import Supervision Scheme (CISS) and the 7% port surcharge—reports confirm that the 7% surcharge remains active in the system, effectively increasing the burdens on importers.

Background: What Was Promised

At a stakeholders’ town hall meeting in July 2025, the Comptroller-General of Customs, Adewale Adeniyi, formally announced the plan to introduce the 4% FOB levy, which aimed to consolidate and replace the 1% CISS fee and the 7% cost-of-collection (surcharge) at ports. This move was part of a broader strategy to fund technological modernization through the B’Odogwu digital clearance platform, phasing out the older NICIS II system.

Legal and Funding Rationales

The authority for the 4% FOB levy is rooted in Section 18, Part V of the Customs Act 2023, which mandates that the NCS collect “not less than 4 % of the free-on-board (FOB) value of imports” to fund its operations and technology, with potential adjustments subject to National Assembly approval. Adeniyi emphasized that while the 4% levy wasn’t arbitrary, it was critical to sustain B’Odogwu and elevate NCS operations to international standards.

Implementation and Stakeholder Reactions

• On August 4, 2025, the NCS officially enabled the 4% FOB levy in its cargo clearance system, replacing the CISS fee.
• Despite assurances that the 7% surcharge would be removed, it currently remains active in the system, as observed by customs agents and importers.
• Several clearing agents expressed frustration. One agent reported a jump in clearance cost—from ₦7 million before August 4, to ₦10 million after the levy was activated.
• Broad concerns were voiced regarding import cost escalation—particularly for electronics, vehicles, and everyday goods—as well as potential inflationary effects.

Stakeholder Calls for Review

Trade bodies and licensed customs agents have petitioned President Bola Tinubu to review the 4% FOB levy, arguing that its hasty introduction and the concurrent imposition of existing surcharges could destabilize businesses. They further criticized procedural lapses—pointing out a lack of public hearings in the Senate, in contravention of legal requirements.

Reports suggest that the new levy, in combination with existing charges such as Import Duty, VAT, ECOWAS levies, and the lingering 7%, could raise importers’ total duty payments by as much as 80% in some sectors.

Conclusion

While the introduction of the 4% FOB levy aligns with the NCS’s modernization goals and has legal backing, its implementation without removing the promised 7% surcharge has heightened costs for importers. Trade associations are calling for an urgent review and procedural fairness.

As the system evolves—including the planned full rollout of the B’Odogwu platform—stakeholder cooperation and clear communication will be vital to ensuring both operational efficiency and economic fairness.

References

Daily Trend. 2025. “Customs Begins 4% FOB Levy Collection as 7% Surcharge Remains.” Daily Trend, August 4.

The Editorial. 2025. “Cargo Clearance Cost Rises as Customs Begins 4% Levy Collection.” The Editorial, August 4.

Daily Trust. 2025. “Customs Commences 4% FOB Levy at Ports.” Daily Trust, August 5.

The Nation. 2025. “Customs to Replace 1% CISS and 7% Surcharge with 4% FOB Levy.” The Nation, July 31.

Ports and Borders. 2025. “NCS Introduces 4% Levy for Modernization of B’Odogwu Platform.” Ports and Borders, July 31.

Leadership News. 2025. “Customs Unveils 4% Levy at Seaports, Scraps CISS and Surcharge.” Leadership News, July 31.

Legit.ng. 2025. “Cost of Imports Spike as Customs Enforces 4% FOB Levy.” Legit.ng, August 12.

Nairametrics. 2025. “Import Costs Rise with Customs’ 4% FOB Levy and VIN Valuation.” Nairametrics, August 12.

Harbours and Port. 2025. “Stakeholders Demand Urgent Review of 4% Levy Policy.” Harbours and Port, August 15.