Frontline licenced Customs agents and freight forwarders have reacted to the recent implementation of 4% import processing charge, insisting that they will not pay the charge, which the Nigeria Customs Service raised from 1% to 4% effective February 4, 2025.
A frontline licenced Customs agent, Dr Kayode Farinto, berated the Customs for a hasty enforcement of the increment of the Comprehensive Import Supervision Scheme (CISS), which he said would lead to increased cost of goods at a time the country is battling hyper inflation.
CEO of Wealthy Honey Investment Limited and former acting national President of the Association of Nigerian Licensed Customs Agents (ANLCA), Farinto called on the Nigeria Customs Service to give a grace of 90 days to sensitise Customs brokers before implementing the 4% CISS charge.
Although he acknowlledged that the increment was not illegal, as the provision for the 4% charge is stipulated in the Customs Act 2023, Section 18, allowing the Customs Service to collect 4% of the Free-On-Board (FOB) value of imports for the purpose of financing its modernization projects, the revered licenced Customs broker maintained that the Customs manner of implementing the increment was contrary to Section 23 of the same Act, which requires that the public and stakeholders must be notified before implementing the increment.
He insisted that 4% increment was imposed without creating the necessary awareness to the trading community, as required by law.
“This is not about whether the Nigeria Customs has the authority to implement the charge. It is a law that was signed at the twilight of the last administration. However, even if the Customs wants to implement it, there are procedures that must be followed. Traders must be informed in advance so they can factor in these costs before shipping their goods. International trade is not a buy-and-sell business—it requires strategic planning,” he said.
“This is an era where our import volumes are already shrinking. If this continues, we will keep discouraging trade, which will have dire economic consequences,” Farinto warned.
This is as the deputy president of National Association of Government Approved Freight Forwarders (NAGAFF), Nnadi Ukochukwu condemned the CISS increase, blaming the Bola Tinubu administration for taxing Nigerians too much. “That is Tinubu’s economic policy, collecting tax, so it is not surprising to us, but this increase is too much and will have effects on the cost of clearing good and eventually raising cost of goods in the market. This increment represent a 300 per cent raise and the effect on price of goods would be significant,” Ukochukwu said.
Meanwhile, Farinto called on all Customs brokers to boycott port activities in protest of the increased charge. He said the the brokers body would petition the Presidency to ensure that this policy is properly implemented.
“In line with our advocacy, we will be reaching out to the presidency and key trade agencies to ensure that this policy is implemented correctly. The government must step in to prevent policies that will further burden the trading community and negatively impact Nigeria’s economy,” he said.
