…Scrap 1% CISS, 7% collection
…Stakeholders praise for B’Odogwu
By Seun Ibiyemi
The Federal Government, through the Comptroller General of Customs, Adewale Adeniyi, has announced plans by the Nigeria Customs Service (NCS) to reintroduce the suspended 4 per cent Free on Board (FOB) levy on imports.
Adeniyi made this known at a Town Hall meeting with stakeholders on the B’Odogwu Clearance System in Lagos on Monday, where participants commended the B’Odogwu platform.
The NCS had suspended the implementation of the 4 per cent FOB levy in February this year following public outcry and concerns from stakeholders, who argued that the levy would raise the cost of imports and negatively affect the ease of doing business.
However, Adeniyi stated that the Service would have no choice but to reintroduce the levy to finance its extensive technology and modernisation programme, which he described as critical to improving operational efficiency.
He clarified that the reintroduction of the levy would create a “win-win” outcome for all parties, as it would replace the existing 1 per cent Comprehensive Import Supervision Scheme (CISS) and the 7 per cent Customs collection charge.
“Technology is not cheap. As we migrate from one system to another, we make significant investments in technology rollouts, including system upgrades and other essential components.
“And this is why I am telling you once again that we really do not have a choice regarding the payment of the 4 per cent FOB because it is necessary for Customs to fund the substantial technology and modernisation programme it has embarked upon.
“With the full implementation of the 4 per cent FOB, it means the 1 per cent CISS will be removed.
“The 7 per cent cost of collection, which is also being charged, will also be completely removed. It will be a win-win situation for everybody.
“The 7 per cent collection is taken from the federation account to administer and fund Customs. What this represents is that the three tiers of government, the local government, state government and the other sub-nationals, are compromising 7 per cent of what ought to go into the federation account. That is what we have practised in the last 10 years.
“However, under the new Act, the 4 per cent FOB is to be paid upfront, and that is it. Once that is done, it is 100 per cent of the revenue generated by Customs that will now go into the federation account. So it is going to be a win-win situation for all of us,” Adeniyi explained.
He identified the B’Odogwu platform as a major element of the Customs modernisation programme, aimed at making it a global reference for trade facilitation.
Adeniyi said the meeting provided an opportunity for stakeholders to share their experiences with the B’Odogwu system so that Customs could assess its successes, strengthen effective areas and address shortcomings.
“We want to hear from our stakeholders their experiences with the B’Odogwu system for us to be able to assess the past success so that we can strengthen the areas where things are working well and to address areas where we needed to make adjustments. So this is why we have organised this programme, which is going to be viewed around our users’ experience,” he said.
Adeniyi expressed optimism that with the NCS now chairing the World Customs Organization (WCO) Council, the Service would use B’Odogwu to demonstrate its capability to develop and manage indigenous technology.
“Our plan is to make B’Odogwu a reference point for trade facilitation. So at the end, in the next two, three years, it is going to be B’Odogwu to the world. And Nigerians will see that we have a system that can work,” he said.
Stakeholders at the meeting praised the B’Odogwu platform, acknowledging some migration challenges from the previous NICIS system and banks’ inability to make amendments on the platform, but lauded its simplicity, transparency and zero downtime.
They noted that it had improved cargo tracking, expedited the generation of Pre-Arrival Assessment Reports (PAAR), and reduced clearance times.
Gerald Mbamalu, one of the stakeholders, said that issues encountered with ASYCUDA and NICIS II had been resolved under the B’Odogwu platform.
He explained that agents could now comfortably transmit their PAAR from anywhere, significantly reducing downtime on the system.
Representatives of several commercial banks at the meeting also attested to the platform’s efficiency, seamless user registration, and prompt responses from Customs officers to inquiries.
The B’Odogwu platform was officially launched by the NCS on 23 October 2024, with the PTML Command serving as the pilot. Since then, it has been successfully deployed across several commands, including Apapa, Tin Can, Kiri Kiri Lighter Terminal, Lilypond, Lekki Free Trade Zone, Murtala Muhammed Airport and other commands across Zones A, B, and C.