…Slams NCS, Finance Ministry over Poor Budget Performance, Demands Immediate Compliance
By Fatima Saka
Abuja Nigeria – The National Assembly Joint Committee on Customs, Excise and Tariff has directed the Nigeria Customs Service (NCS) to immediately revert to the implementation of the 4% Free on Board (FOB) policy as stipulated in the Customs Act, denouncing the continued collection of 7% cost of collection and 1% Comprehensive Import Supervision Scheme (CISS) as illegal.
Chairman of the Senate Committee on Customs, Senator Isah Jibrin (APC, Kogi East), gave the directive on Monday during an interactive budget review session with the Minister of Finance, Wale Edun, and the Comptroller General of Customs, Adewale Adeniyi.
Senator Jibrin expressed dismay that despite the 2024 budget being predicated on the 4% FOB, the Customs continued implementation using the 7% cost of collection, contrary to the National Assembly’s resolution. He insisted that all collections must be based strictly on legal frameworks, stating:
“4% FOB should be implemented as enshrined in the law.”
Finance Minister Edun assured lawmakers of compliance, acknowledging the legal backing for the 4% FOB.
“It is a law, and we are going to obey the 4% FOB,” he said, while also noting that implementation was delayed following requests for wider stakeholder engagement.
Comptroller General Adeniyi explained that the delay stemmed from stakeholder concerns, but affirmed that consultations have progressed and the Customs is now ready to proceed with full implementation.
“The 4% FOB will reduce import costs, eliminate illegal charges, and ensure more revenue flows directly to government coffers,” he stated.
The committee also grilled the Finance Ministry and NCS over the poor implementation of the capital component of the 2024 budget, despite Customs exceeding its revenue target of ₦5.07 trillion by generating ₦6.1 trillion. The committee noted that many capital projects were stalled due to delayed approvals in the Minister’s office, with some pending since August 2024.
Co-Chairman of the House Committee on Customs and Excise, Hon. Nneke from Kogi State, criticized the continued collection of the 1% CISS and 7% cost of collection, describing them as executive directives without legislative backing.
“The 1% CISS and 7% collection cost are illegal. Only the 4% FOB is backed by law,” he said, urging the Customs to exercise its statutory autonomy to execute capital projects under Section 18 of the Customs Act without undue delays from the Ministry.
He further emphasized that the Customs Act empowers the NCS to implement approved capital projects up to 10% of their total capital budget independently, without necessarily seeking Federal Executive Council approval.
In response, Minister Edun admitted that ten Customs projects worth ₦50 billion are awaiting FEC approval and promised to expedite action, while affirming the government’s commitment to the rule of law and improved trade facilitation under the African Continental Free Trade Agreement.
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Lawmakers warned that continuous disregard for the 4% FOB provision and persistent collection of illegal levies may invite legal consequences, stressing the need to align policy implementation with statutory provisions.
The session ended with a unified resolution that all illegal deductions by the NCS must cease immediately and the Customs must implement the 4% FOB henceforth in compliance with the law, as the National Assembly would not condone executive overreach or disregard for legislative authority.
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