The Federal Government, via the Nigeria Customs Service (NCS), is contemplating lowering import duties by eliminating the seven percent surcharge presently applied to all imported goods.
During a town hall meeting with stakeholders on the Bodogwu clearance system, Adewale Adeniyi, the Comptroller-General of Customs, revealed that the plan to abolish the surcharge is currently under legislative scrutiny.
Adeniyi stated that once the surcharge is eliminated, the duties on all cargo destined for Nigeria will decrease, ultimately reducing the overall expenses associated with conducting business at the ports.
“At the beginning of this meeting, I mentioned that the Bodogwu system is aimed at reducing operational costs at our ports,” he said. “We’ve seen that with the right technology and stakeholder cooperation, we can achieve significant improvements.”
This initiative is viewed as a reaction to increasing concerns from the business sector, particularly the Manufacturers Association of Nigeria (MAN), which had vehemently opposed the introduction of a 4% Free on Board (FOB) levy by the NCS. The association contended that the levy would increase the cost of importing raw materials and finished products, resulting in higher consumer prices and endangering local industries.
The Nigeria Customs Service had previously implemented the levy to replace the 1% Comprehensive Import Supervision Scheme (CISS), stating it was necessary to finance modernization and enhance operations. However, due to significant opposition, the levy’s implementation was halted.
The proposed elimination of the seven percent surcharge is anticipated to motivate more businesses to utilize Nigerian ports and enhance the competitiveness of trade.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli
