Nigeria Customs Scraps Multiple Import Levies, Introduces Unified 4% FOB Charge Amid Push for Trade Reforms

In a sweeping reform that could reshape Nigeria’s import ecosystem, the Comptroller-General of Customs, Adewale Adeniyi, has announced the elimination of multiple levies previously imposed on imports, replacing them with a streamlined 4% Free On Board (FOB) charge.

The move is expected to simplify the country’s notoriously complicated port charges, reduce room for abuse, and promote ease of doing business.

The announcement was made during a stakeholder town hall meeting in Lagos on Monday, July 21, where Adeniyi detailed the government’s plan to replace the 1% Comprehensive Import Supervision Scheme (CISS) and the 7% cost of collection with a single upfront charge of 4% on FOB value.

“Once the 4% FOB takes effect, the 1% Comprehensive Import Supervision Scheme (CISS) will cease automatically. In addition, the 7% cost of collection currently charged will also be completely removed,” the Customs boss said.

“Under the new Act, the 4% FOB is paid upfront—and that’s it. Thereafter, 100% of the revenue generated by Customs will go into the Federation Account. It’s a win-win for everyone.”

What the New Policy Means

Before this reform, importers were subject to fragmented charges that not only inflated the cost of doing business but also created loopholes for discretionary fees and corrupt practices. The Customs Service aims to introduce a transparent, predictable framework that could significantly consolidate the levies into one clear charge, improve compliance, and revenue generation.

The 4% FOB rate, paid at the point of entry, is designed to be both simple and inclusive—replacing overlapping charges that often confused importers and led to repeated assessments. The unified structure will also put an end to the Customs Service retaining 7% of collected revenue as a “cost of collection”—a system that critics have long argued incentivized internal inefficiencies.

Potential Benefits

Economic experts and trade analysts believe the policy could bring immediate and long-term benefits if effectively implemented.

• Enhanced Revenue Transparency: With 100% of Customs revenue now set to flow directly into the Federation Account, the reform eliminates the previous practice where a portion of funds was retained by Customs. This is expected to improve fiscal discipline and give the federal government clearer oversight over trade-related income.
• Reduction in Trade Costs: Eliminating multiple and sometimes overlapping levies could reduce the overall cost of imports. This may eventually reflect in consumer prices and stimulate higher import volumes, especially for small and medium-scale businesses that previously struggled with opaque Customs charges.
• Improved Global Trade Rankings: Nigeria’s standing in global ease-of-trade metrics has been persistently poor, largely due to delays, unofficial charges, and complex clearance procedures. A more predictable levy system could boost Nigeria’s ratings and send the right signal to investors and trading partners.
• Curbing Corruption and Abuse: By removing discretion from the process and digitizing the clearance chain through the B’Odogwu platform, the reform limits avenues for arbitrary charges and backdoor negotiations—a longstanding problem at Nigeria’s ports.

The introduction of the B’Odogwu clearance platform—hailed as a homegrown digital solution—is being touted as a critical pillar of the reform. It is designed to automate Customs processes, reduce human interference, and improve the speed and integrity of clearance procedures.

DCG Kikelomo Adeola, head of ICT and Modernisation, stressed the platform’s strategic value, noting that its rollout aligns with Nigeria’s leadership role as chair of the World Customs Organisation (WCO). “This is more than a digital tool. It’s a signal that Nigeria is ready to lead on Customs modernisation globally,” she said.

At the town hall, freight forwarders, clearing agents, and trade operators welcomed the move but voiced concerns about the readiness of supporting infrastructure. Many pointed to persistent delays from banks and documentation lapses that could frustrate the new system’s efficiency.

Saleh Ahmadu, Chairman of Trade Modernisation Project Limited (TMPL), assured participants of ongoing investments in infrastructure to ensure a seamless transition. “We understand the concerns. But our team is focused on building a system that works for all parties—from Customs to the smallest importer,” he said.

Several panel sessions were held to address lingering issues, including “Overcoming Common Importer Challenges on B’Odogwu” and “Enhancing Transparency, Speed, and Revenue through Full Participation.” A candid Q&A session followed, with Customs officials pressed on how soon the full switch to the new framework would take effect and how implementation hiccups would be handled.

Lingering Questions

However, some stakeholders expressed fears that without strict enforcement and stakeholder education, the system could suffer the same fate as previous reforms—bogged down by implementation gaps and informal practices.

There are also questions around how long it will take for the benefits to be felt at the retail and industrial levels, and whether Customs staff and partner agencies have been adequately trained for the digital transition.

However, many industry insiders say the unified 4% FOB charge is the boldest step yet in Nigeria’s quest to reform its trade environment. If executed with transparency and backed by functional digital infrastructure, it could mark a turning point in the country’s long battle with port inefficiencies and trade-related corruption.

The Customs Service says implementation will be gradual but firm—and that the days of multiple overlapping charges at Nigeria’s ports are numbered.