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.

The Chairman of BUA Cement Plc, Dr Abdul Samad Rabiu, says the Central Bank of Nigeria’s (CBN) ongoing foreign exchange reforms have effectively eliminated the era of lobbying for dollars—a practice he admitted was once routine for Nigerian businesses under the previous FX regime.

Rabiu, who spoke in Abuja on Monday during a media briefing following the company’s 9th Annual General Meeting, said the new FX framework has brought transparency and fairness to currency access, allowing businesses to plan with more confidence and less political maneuvering.

“I was making a joke a few weeks ago that I’ve only seen the current CBN Governor maybe twice since his appointment. That’s because I don’t need him,” Rabiu said. “Before now, I used to visit the CBN every two weeks to lobby for FX. That was the only way to survive.”

The billionaire businessman described the previous system as a distortion that created artificial scarcity and privilege. “The rate was N500 or N600 officially, but nobody could get it. On the street, it was closer to N1,000. It was an artificial rate,” he said.

In contrast, Rabiu praised the new FX system for unifying the market and closing the gap between the official and parallel rates.

“Now, the rate you get is what everyone else gets. You go to the bank, you get FX at the market rate,” he said, adding that the current policy environment fosters a level playing field for all businesses.

Naira Could Strengthen Further

Rabiu expressed optimism that the naira would continue its upward trajectory, predicting that the exchange rate could appreciate to around N1,200/$ in the coming months, down from highs of nearly N2,000/$ earlier in the year. He linked this optimism to increased transparency in FX flows and the market-driven approach adopted by the CBN.

The BUA chairman said this trend is already translating into lower commodity prices.

“We are beginning to see a decline in the cost of goods—cement prices are coming down, food prices too,” he noted.

FX Reforms Offset by Soaring Input Costs

However, Rabiu acknowledged that cement prices had earlier risen sharply due to cost pressures tied to FX volatility, imported machinery, and high energy costs.

“Despite these challenges, we’ve tried to keep our prices stable and fair. But energy and imported components really drove production costs up,” he explained.

BUA Cement’s Financials Defy Volatility

Despite macroeconomic headwinds, BUA Cement posted a remarkable 90.6 per cent revenue growth in 2024, reaching N877 billion—up from N460 billion in 2023. The company, however, reported FX-related losses of N93.9 billion in the same period, underscoring the lingering impact of currency depreciation earlier in the year.

Profit before tax rose 48.2 per cent to N99.63 billion, while profit after tax for the first quarter of 2025 alone stood at N81 billion—more than the entire earnings for the full year 2024. Rabiu projected that full-year 2025 earnings could hit N250 billion if current performance trends continue, buoyed by increased output, better FX conditions, and operational efficiencies.

Return on average capital employed rose to 15 per cent in 2024 from 10 per cent the previous year, while earnings per share grew to N2.18 from N2.05, representing a 6.3 per cent increase.

“This performance was driven by a combination of increased dispatch volumes and prudent pricing strategies, even as the Company absorbed rising input costs,” Rabiu said. He added that cash generation had also improved significantly, allowing BUA Cement to pay down import finance facilities and reduce its exposure to dollar-denominated obligations.

Having recently commissioned two new cement lines in Sokoto and Edo states, Rabiu disclosed that the company has reached its production target of 20 million metric tonnes per year and will not be pursuing further expansion in the short term.

“Our focus now is on consolidating operations, cutting costs, and improving efficiency,” he said.

BUA Bets on Local Content and LNG to Tame Energy Costs

Managing Director and CEO of BUA Cement, Yusuf Binji, also spoke at the AGM and emphasized that energy remains the company’s largest cost driver. He revealed that BUA is investing in a 700-tonnes-per-day liquefied natural gas (LNG) regasification plant to stabilize energy supply and cut costs.

Binji said the company had renegotiated existing service contracts to increase local content participation, which has helped in reducing FX exposure and improving cost efficiency. “We are focused on resilience, strategic agility, and delivering value in a volatile macroeconomic environment,” he said.

Rabiu reaffirmed the company’s commitment to rewarding shareholders, announcing a N2.05 dividend per share—a 94 per cent payout ratio.

“We remain committed to shareholder value and long-term sustainability,” he said.

The financial turnaround, strategic investments, and FX reforms have all contributed to a more stable outlook for BUA Cement in 2025, reinforcing the group’s position as one of Nigeria’s most formidable industrial players.