The Nigeria Customs Service (NCS) has announced a major overhaul of its revenue collection structure at the ports, introducing a new 4 percent Free on Board (FOB) levy to replace the existing 7 percent customs collection fee and the 1 percent Comprehensive Import Supervision Scheme (CISS) fee.
Comptroller-General Adewale Adeniyi made the disclosure during a high-level town hall meeting in Ikeja, Lagos, which brought together key industry players including importers, freight forwarders, shipping lines, terminal operators, banks, and other financial institutions. The meeting focused on the rollout of the NCS’s new digital clearance system, known as B’Odogwu.
Why the Shift?
The 4% FOB levy, which will be applied to the value of goods up to the loading port (excluding insurance and freight), is aimed at simplifying customs charges and funding the Unified Customs Management System (UCMS) a fully digital platform designed to improve clearance processes and enhance trade compliance.
“There will be no additional charges beyond the 4 percent FOB,” Adeniyi told stakeholders. “This replaces both the 1 percent CISS fee and the 7 percent federation account collection. It’s a single charge to streamline the process.”
He explained that the move is necessary to support Nigeria Customs’ transition from the current NICIS II platform to a homegrown, more advanced digital system, which he said requires significant investment.
“Technology doesn’t come cheap,” he added. “In Yoruba we say, ‘the soup that tastes good costs money.’ This is what’s driving our decision.”
Background and Stakeholder Engagement
The NCS had originally planned to implement the 4% FOB charge in February but paused the rollout to allow for broader consultations. Tuesday’s meeting was part of that stakeholder engagement process, which Adeniyi said has now made the policy’s implementation inevitable.
He stressed that the revenue from the FOB levy will be dedicated to modernising Customs operations and maintaining technological infrastructure.
“B’Odogwu to the World”
Adeniyi also used the event to champion Nigeria’s indigenous innovation in customs management, referencing the B’Odogwu platform as a symbol of the country’s capability to lead in digital transformation.
“Now that Nigeria holds the chairmanship of the World Customs Organization (WCO) Council, we want to showcase what we’ve built. B’Odogwu is a homegrown solution, and we’re ready to take it global.”
The platform, he said, will enhance transparency, reduce bottlenecks, and improve trade facilitation across Nigerian ports.
Reactions from Stakeholders
Stakeholders at the meeting welcomed the consolidation of fees into a single 4% levy, describing it as a welcome simplification. However, concerns were raised about the ongoing system migration, especially with delays in bank processing, documentation flow, and transition readiness.
Adeniyi acknowledged the issues but reiterated that the long-term benefits of the reform outweigh the short-term hiccups.
“We’re investing not just in technology but in the entire system,” he said. “We ask for your understanding as we make these necessary changes.”
