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…FG pledges swift implementation of national single window to curb revenue leakages
Isah Jibrin, Chairman of the Senate Committee on Customs and Tariffs, has called for the immediate implementation of the 4% Free-On-Board (FOB) charge as provided by law to further operations of the Nigeria Customs service.
BusinessDay reports that the Nigerian customs law provides that 4% of the FOB value of certain imports or exports should be paid as a processing or administrative fee to support Customs operations.
This charge is meant to fund the Nigeria Customs Service for its role in trade facilitation, enforcement, and revenue generation.
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Speaking during a joint National Assembly session with Wale Edun, Minister of Finance and Coordinating Minister of the Economy, on Monday, Jibrin questioned the delay in enforcing the FOB provision.
He said, “Do we subject something that has been passed into law to further debate or defence?”
He asserted that the four percent be implemented immediately “because it is law.”
Following his remarks, the motion was put to a voice vote and the Committee unanimously supported the immediate enforcement of the FOB charge as enshrined in existing legislation.
The lawmakers also urged the finance minister to expedite the release and use of available funds for Customs modernisation projects, particularly the ₦50 billion initiative awaiting Federal Executive Council (FEC) approval.
Meanwhile, the Federal Government has restated plans to implement the National Single Window, an initiative of the President Bola Tinubu’s administration to plug revenue leakages, enhance trade facilitation and improve efficiency in international trade transactions.
Edun disclosed while appearing before lawmakers.
Edun said, “Customs revenue is significant and remains a major contributor to the Federation Account for the benefit of both the federal and state governments.
“We are working towards achieving higher revenue through more efficient processes and by blocking loopholes and leakages.”
He further stated that the government is committed to “addressing distortions in the economy following the removal of fuel subsidies and the adoption of a market-determined foreign exchange system.”
He noted that price equalisation remains the only viable approach to policing market dynamics and ensuring fair competition.
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Speaking on trade settlements, the minister further acknowledged ongoing challenges in Nigeria’s trade payment system, particularly informal transactions.
He stated, “Many of our trade transactions are conducted outside formal channels.
“We are working on reforms that will improve the system, including the possibility of settling imports and even crude oil sales in naira.”
The Finance minister also raised concerns about youth-led digital payments that escape the scrutiny of financial regulators, underscoring the need to bring such transactions into the formal financial system.
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