The Federal Government has announced it is planning to reduce import duties by scrapping the seven percent surcharge currently imposed on all imports.
The Government made this known through the Nigeria Customs Service (NCS).
At a town hall meeting with stakeholders on the Bodogwu clearance system, Comptroller-General of Customs, Adewale Adeniyi, disclosed that the proposal to eliminate the surcharge is already undergoing legislative review.
According to Adeniyi, once the surcharge is removed, duties on all Nigerian-bound cargo will be reduced, ultimately lowering the overall cost of doing 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.”
The move is seen as a response to growing concerns from the business community, especially the Manufacturers Association of Nigeria (MAN), which had strongly protested the introduction of a 4% Free on Board (FOB) levy by the NCS. The association argued that the levy would raise the cost of importing raw materials and finished goods, leading to higher prices for consumers and placing local industries at risk.
The Nigeria Customs Service had earlier introduced the levy to replace the 1% Comprehensive Import Supervision Scheme (CISS), citing the need to fund modernization and improve operations. However, due to widespread backlash, the implementation was suspended.
The proposed removal of the seven percent surcharge is expected to encourage more businesses to use Nigerian ports and improve trade competitiveness.
Metrowatchxtra
