Clearing Agents Reject 4% Customs Levy, Demand Proper Notification
The recent increase in Nigeria’s import duty exchange rate by the Nigeria Customs Service (NCS) has sparked outrage among stakeholders in the maritime sector, with clearing agents rejecting the newly enforced 4% levy on imported cargoes.
The Federal Government, through the Central Bank of Nigeria (CBN), raised the exchange rate for import duty calculation from ₦952 to ₦1,356 per dollar, a sharp rise that has significantly increased cargo clearance costs. This change follows previous adjustments from ₦783 to ₦952 per dollar just weeks ago and from ₦757 to ₦783 per dollar in November 2023.
A former acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Kayode Farinto, criticized the abrupt nature of the policy enforcement, emphasizing that the Customs Act 2023 requires proper notification before such changes take effect.
“I’m not aware of any strike threats, but what I do know is that Section 18 of the Customs Act 2023 says Customs shall charge 4 per cent of the free-on-board value of imports according to international best practices. So that means whatever they are implementing now is in line with the Act,” he noted.
Farinto, however, pointed out that Section 23 of the same Act mandates the Customs Service to publish such policies on their website for proper sensitization.
“Nobody has been sensitised. You can’t just wake up and say you want to implement 4 per cent duty. It’s ridiculous. It’s absurd. And this negates what is happening in international climes.
“So, Customs should be advised to withdraw that implementation and sensitise the trading community before they start enforcing it. We are not in Oshodi Market where you just buy and sell, and your customer tells you tomorrow that he is inflating the price of whatever he is selling.
“This is international trade, people must be sensitised, traders abroad should be informed that from a specific date in 2025, we shall be implementing this charge,” he added.
Another maritime stakeholder, Olumide Obukun, expressed frustration over the lack of prior notice before the policy enforcement.
“Nobody is threatening to strike. The real issue is that when the policy was being discussed at the National Assembly, we were not there. Now, it has already been signed into law, and Customs has simply implemented it,” he explained.
He further lamented the surprise nature of the development:
“We just woke up this morning to find out—no notice, nothing. That’s the only issue.”
While clearing agents may not directly bear the cost of the increased levy, importers and consumers will ultimately feel the financial strain.
“We are not importers; we are Customs or clearing agents. The people who own the goods are the ones that will pay. Then all of us will meet at the market.”
“As for the common man, it will affect them in the sense that prices of goods in the market will rise,” he warned.
The Nigeria Customs Service Act 2023 introduced structured financial provisions for revenue generation and trade facilitation. Section 18 outlines the mandatory 4% charge on the free-on-board (FOB) value of imports, along with other revenue streams such as government allocations, grants, and user fees.
The Act also empowers the President to propose an increase beyond the 4% charge, subject to National Assembly approval. Additionally, the NCS can execute capital expenditure projects up to 10% of the total approved budget and borrow within 10% of its approved capital expenditure, provided the President approves.
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To ensure transparency, Section 23 of the Act mandates the publication of all customs-related policies on official platforms. This includes import/export procedures, duty rates, trade restrictions, penalties, and appeals processes. However, concerns remain about the lack of public awareness before policy implementation.
With growing discontent in the maritime industry, stakeholders are urging the Federal Government and the Nigeria Customs Service to reconsider the abrupt implementation and engage traders, importers, and clearing agents before enforcing future policies.
