In junior secondary, we had many competitions. One of such was to read novels within the African Writers Series, from Chinua Achebe’s Things Fall Apart to Mine Boy by Peter Abrahams. On the Igbo side, my all-time Igbo writer, Tony Ubesie, dropped the matchless peerless novels – Ukwa Ruo Oge Ya O Daa and Isi Akwu Dara N’ala – which I consumed in multiples.

But in all the books, Uwadiegwu, an Igbo novel, was full of wisdom, and could be seen as a practical guide on living life! He dropped many zen-like ideas. For example, if you must borrow, borrow from your kinsmen because when debts are localized, they are better, since by Igbo culture, if you are unable to repay, and your neighbour locks you up, he will also be responsible to take care of your family!

He posited that Nwaoha [a child to the community], Adaoha [a daughter to the community],  Ekeoha [a male child to the community], etc make it clear that a child does not belong to the parents alone, but to the community. And if your lender is part of the community, it gives you a cover in case you cannot repay since raising those kids are part of their issues also.

He went on and on, and none of those things made sense for a teenager but over time, I have come to appreciate the book.  A great session was: do not fight wars with your neighbours for a foreigner because one day any war will end. And if you must fight wars, make sure the wars are not in your homeland.

This takes me to the news that Donald Trump had spoken with Putin of Russia. People, did you read this well? Just imagine if Ukraine’s Zelenskyy read that book because right now, everything Europe has cooked has gone sour. Trump is leading on this matter because Putin and Zelenskyy should not be fighting, just as Israel and Palestine must stop wars [I mean grandchildren of Abraham sharing so much hatred, not good]

We will begin the live Zoom component of Tekedia Mini-MBA on Saturday. I will discuss the mission of firms and why innovation is very vital for companies to accomplish whatever they have set out to do. Simply, innovation must facilitate growth. We will solve the equations of markets:

Great Company := Awesome Products + Superior Execution.

Innovation := Invention + Commercialization.

Sat, Feb 15 | 7pm-8.30pm WAT | Innovation, Growth and the Mission of Firms – Ndubuisi Ekekwe  | Zoom link  in the board.

Registration continues for the 16th edition of Tekedia Mini-MBA here 

The Nigeria Customs Service (NCS) has suspended the implementation of a 4 percent charge on the Free-on-Board (FOB) value of imports, following intense criticism from industry stakeholders and ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The announcement was made on Tuesday by Abdullahi Maiwasa, Assistant Comptroller of Customs, who explained that the suspension would allow for broader stakeholder engagement and consultations on the framework for implementing the new levy.

The charge, which was introduced under the Nigeria Customs Service Act (NCSA) 2023, was set to replace the 1 percent Comprehensive Import Supervision Scheme (CISS) previously used to fund customs modernization. However, concerns over the impact on businesses and the cost of imports led to calls for a review.

Maiwasa stated that the decision aligns with Section 18(1)(a) of the NCSA 2023, which provides the legal framework for the charge. He added that with the expiration of the contract agreement with service providers such as Webb Fontaine, there was an opportunity to holistically review the customs revenue framework.

The previous funding arrangement, which separated the 1 percent CISS and 7 percent cost of collection, was said to have created inefficiencies and funding gaps in customs operations. The new law sought to consolidate funding under a 4 percent charge on the FOB value of imports, ensuring a sustainable revenue source for modernizing customs operations.

However, the timing and structure of the charge drew significant backlash from importers, manufacturers, and industry stakeholders, who feared it would increase import costs and exacerbate inflationary pressures. In response, the NCS opted to suspend implementation to allow for further deliberations.

“This transition period will allow the Service to optimize the management of these frameworks to serve our stakeholders and the nation’s interests better,” Maiwasa said.

Customs’ Shift Towards Digital Modernization

The NCS remains focused on modernizing its operations through technological innovations. Maiwasa highlighted that Section 28 of the NCSA 2023 empowers Customs to develop and maintain electronic systems for information exchange between the Service, other government agencies, and traders.

He pointed to several digital initiatives already in place, including the recently launched B’Odogwu clearance system, which is aimed at improving transparency and reducing clearance times. Other initiatives authorized by the Act include:

• Single Window implementation (Section 33) – a unified platform for trade facilitation.
• Risk management systems (Section 32) – to enhance efficiency and security in customs processing.
• Non-intrusive inspection equipment (Section 59) – allowing for faster and more accurate cargo inspections.
• Electronic data exchange facilities (Section 33(3)) – to streamline communication between stakeholders.

Concerns Over Import Costs and Inflation

The initial announcement of the 4 percent charge on FOB imports raised alarm among importers, who argued that the new levy would increase the cost of goods, further worsening inflation. Nigeria has been grappling with soaring prices across essential commodities, with businesses already struggling under high exchange rates and rising production costs.

Industry analysts warned that introducing additional import charges at a time of economic hardship could force many businesses to pass the costs onto consumers, leading to even higher prices for goods and services. The pushback from stakeholders ultimately pressured the government to reconsider the policy’s timing and implementation.

With the suspension in place, the NCS is expected to engage stakeholders in consultations on how best to structure the funding mechanism for customs modernization without overburdening importers.

While the government insists that customs reforms are necessary to improve efficiency and curb revenue leakages, importers and business owners argue that policies must be implemented gradually and strategically to prevent unintended economic consequences.

The outcome of the upcoming consultations will determine whether the 4 percent FOB charge will be modified, reduced, or scrapped altogether. However, for now, importers can breathe a sigh of relief as the additional levy has been put on hold.