Connect with us

Customs

Freight Forwarders spoil for war  with Customs over 15 percent NAC levy.

CGC, Ali
—-Customs is confused, NAC can’t be 15 percent but 2 percent- Farinto
—-Customs invites agents to truce meeting in Abuja
Eyewitness Reporter
Weeks after the controversy surrounding the disputed Vehicles Identification Number (VIN) valuation policy seems to be simmering down, the Nigeria Customs Service may have stoked another ember of war over its recently introduced 15 percent National Automotive Council (NAC).
On April 1st, the Customs High Command, relying on the ECOWAS treaty, slammed 15 percent and 20 percent NAC levy on old or used and new vehicles respectively.
According to Timi Bomodi, the National Public Relations Officer of the Service, “the nation has adopted all tariff lines with few adjustments in the extant CET.
“As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive Policy, NCS has retained a duty rate of 20 percent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 percent.
” New vehicles will also pay a duty of 20 percent with a NAC levy of 20 percent as directed in the Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022”
However, the freight forwarders have rejected the new regime of the levy.
Kayode Farinto, the fiery Vice President of the Association of Nigerian Licensed Customs Agents (ANLCA), who described the Customs High Command as “confused” over the matter, said there was no way NAC could be 15 percent.
“NAC cannot be 15 percent but 2 percent” he declared emphatically.
” It is (NAC) 2 percent of Cost, Insurance, Freight (CIF).
” If the Customs said it is 15 percent, then they are confused and do not know what they are doing.
” By virtue of CEMA Act 6 of 2014, NAC is 2 percent of CIF.
The ANLCA High Chief also declared that Customs cannot charge NAC on old or used vehicles.
Farinto however said the freight forwarders have rejected in its entirety the new regime of NAC levy.
” We are contesting the position of the customs on the matter” he stated.
Speaking in the same vein, the Chairman of the National Council of Managing Directors of Licensed Customs Agents, Ports & Terminal Multipurpose Limited chapter, Abayomi Duyile, said the new policy could have an adverse effect on the sector.
 “As I speak to you now, the NCS has reintroduced the NAC levy, which is a 15 percent payment on used imported vehicles.
“That is a major issue; it means an additional 15 percent on the duty we are paying currently.”

Duyile said he was surprised the service was coming up with the levy in the second quarter of this year.

“We will meet tomorrow (Wednesday)and when we do, we will make our views known to the government.

“What we have in Nigeria are assembly plants, it is not as if we produce any vehicles completely in Nigeria.
” I am surprised now that towards the second quarter of 2022, the Customs is coming back again with the NAC levy.

“Why should the NAC levy be on used vehicles? I don’t know why they are coming up with the NAC levy again now.

“The Customs didn’t inform us, so we have been advised to stop the process of duty payment until this is sorted out.
” This is everywhere for now and anywhere you are clearing used vehicles, you will face the same problem.”

The Chairman of the National Association of Government Approved Freight Forwarders,(NAGAFF) PTML Chapter, George Okafor, said the outcome of the association’s meeting with its members will determine whether the agents would embark on the proposed strike or not.

“This is wrong because there is no way Customs can calculate NAC levy on used vehicles.

“It should be for new vehicles. The levy is for new vehicles, and not old or used vehicles.
“We will have to meet with the Customs command to determine the next line of action.”

Sensing the agitations of the freight forwarders, the Customs High Command has invited the leadership of the freight forwarders to a meeting on Wednesday.

“They have invited us to a meeting in Abuja tomorrow (Wednesday)”, Farinto said.
“There, we are going to state our position against the position adopted by the customs on the issue” the ANLCA chieftain declared.

However, Bomodi has said the move was in line with the Economic Community of West African States Common external tariff, 2017-2021.

In his statement, he said the service in April migrated from the old version of the ECOWAS CAT to the new version, adding that this was in line with the World Customs Organisation’s five-year review of its nomenclature.

“On Friday, April 1, 2022, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026).

“This is in line with WCO’s five years review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.

“In Chapter 98 of the current CET – bonafide assemblers importing Completely Knocked Down and Semi Knocked Down are to enjoy a concession of zero percent and 10 percent duty rate, respectively.

“While within ECOWAS, duty rates for the same items are five percent and 10 percent, respectively. Incentivising their efforts through policy interventions guarantees a win-win situation for the nation in the long run.

” Implementing the current CET takes immediate effect, please,” the statement added.
NAC had in 2011 proposed 35 percent duty differentials between imported fully-built units and locally assembled cars. The proposal reportedly failed later.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Customs

Beer merchants panic over tax stamp policy, seeks solace from Customs

Gloria Odion, Maritime reporter 
The proposed Tax Stamp policy of the Federal government has expectedly activated panic mode among beer industry leaders who have expressed anxiety of possible escalation in the production and consumer costs if the policy is eventually implemented.
Though, there is an ongoing dialogue between stakeholders and the government to manage the economic impact of the policy, the leaders of the brewing sector had sought more clarification on the policy from the Nigeria customs service when they engaged with the Comptroller- General of the Service, Adewale Adeniyi on Monday, May 11th, 2026.
The brewers have come to discuss the economic impact the proposed policy will have on their brewing business.
At the roundabout discussion, Adewale had emphasised the need for credible data, inclusive consultations and sustained stakeholder engagement in Nigeria’s ongoing fiscal and regulatory reforms.
‎Speaking during the engagement, CGC Adeniyi stressed that policy decisions affecting strategic sectors of the economy must be guided by verifiable data and a clear understanding of prevailing market realities.
“‎We need to have a clear understanding of what constitutes illicit trade. Some of these products are legitimately manufactured in Nigeria.
“In other jurisdictions,customs administrations are already engaging in discussions around how such products find their way across borders and into unauthorised markets” the CGC stated.
‎He further underscored the importance of accuracy and credibility in industry data presented to policymakers, noting that sound policy formulation depends on reliable information.
‎“One thing we need to understand more clearly is where some of these estimates came from.
“When we are making policy decisions of this nature, the credibility and accuracy of data must never be in doubt,” he added.
‎Highlighting the Service’s ongoing modernisation efforts, Adeniyi noted that the NCS has continued to introduce reforms aimed at improving trade facilitation and enhancing operational efficiency across the supply chain.
‎“We have consistently introduced initiatives aimed at facilitating trade. We introduced the Advance Ruling. We introduced the Authorised Economic Operator programme.
“We also rolled out several reforms on our own initiative, not because we were under pressure, but because we recognised the need to improve trade facilitation,” he said.
‎On the proposed tax stamp initiative, the CGC clarified that consultations with stakeholders are still ongoing and that no final decision has been reached regarding implementation.
‎“As far as I am concerned, consultations are still ongoing. If this initiative is legitimate and beneficial, then we all have a responsibility to ensure that we are heading in the right direction,” he stated.
‎He also encouraged private-sector operators to maintain constructive engagement with relevant government agencies to ensure that any eventual policy framework balances revenue protection with industrial sustainability and economic growth.
‎Earlier, the leader of the delegation and Chief Executive Officer of Guinness Nigeria Plc, Girish Sharma, said the visit was aimed at presenting the industry’s position on the proposed tax stamp framework, which he noted has generated considerable discussion within the sector.
‎Sharma acknowledged the importance of regulatory controls but maintained that the beer industry remains one of the most structured and highly regulated sectors in Nigeria, with limited exposure to counterfeiting risks.
‎“We fully understand the purpose and importance of tax stamps, particularly in industries where counterfeiting is a major concern.
“However, within the beer sector, counterfeiting is minimal,” Sharma said.
‎He noted that existing compliance and monitoring systems already provide adequate visibility across production and distribution channels.
‎“From an end-to-end compliance perspective, we believe there is already sufficient transparency and oversight,” he added.
‎Sharma also highlighted the industry’s contribution to employment generation, government revenue and economic growth, cautioning that additional regulatory measures should be carefully designed to avoid unintended impacts on the sector and the wider economy.
The 2026 tax stamp policy in Nigeria is a regulatory, security-focused, and mandatory track-and-trace system imposed by the government on excisable goods—including alcohol, tobacco, and sugar-sweetened beverages—to curb illicit trade and bolster revenue.
The policy, aimed at reducing smuggling and counterfeiting, requires high-security physical labels or digital codes to be affixed to products.
The policy applies to excisable products such as tobacco, alcohol, and sugary drinks, with specialized stamps for textile imports, such as the Red vs. Green stamps.
 Manufacturers must ensure compliance. Under the Nigeria Tax Act 2025, compliance is required, and failure to stamp documents within 30 days can lead to severe penalties, including a 10% penalty fee plus interest.
While the government aims to enhance revenue, manufacturers, particularly in the brewing sector, have raised concerns that the policy could significantly diminish profitability and increase consumer prices, with potential to create 100% loss in profits if implemented as proposed.
Continue Reading

Customs

At UNILORIN conference, Adeniyi advocates for human- driven technology for balanced developmental efforts

Gloria Odion, Maritime reporter 
‎The Comptroller-General of Customs (CGC), Adewale Adeniyi, has reaffirmed the Nigeria Customs Service’s commitment to responsible digital transformation and innovation driven governance during his keynote address at the 4th Biennial International Conference organised by the Faculty of Communication and Information Sciences, University of Ilorin, in collaboration with the Faculty of Philology, RUDN University, Russia.
‎The conference, themed “Disruptive Technology: Human and Artificial Intelligence in the Digital Economy,” was held on Wednesday, 13 May 2026, at the University of Ilorin Main Auditorium.
The event attracted academics, communication experts, technology professionals, researchers, policymakers, and heads of government agencies to deliberate on the growing influence of digital innovation and artificial intelligence on governance, education, trade, and economic development.
‎In his address, CGC Adeniyi stressed the importance of balancing technological advancement with human responsibility, noting that the future of the digital economy depends not only on artificial intelligence but also on ethics, leadership, and institutional capacity.
‎“The digital age is, in the end, a human story, and the real test of our generation is not how powerful our machines become, but how wisely our societies choose to use them,” Adeniyi stated.
‎He observed that disruptive technologies such as digital payments, e-commerce, artificial intelligence, and smart systems have already reshaped global operations, adding that the world is no longer preparing for disruption but actively functioning within it.
‎According to him, government institutions must ensure that technological innovation strengthens transparency, public trust, and operational efficiency without compromising accountability.
‎Drawing from the Nigeria Customs Service’s experience, the CGC highlighted ongoing digital transformation initiatives, particularly the deployment of the B’Odogwu Unified Customs Management System, which has significantly improved trade facilitation, cargo processing, and inter-agency collaboration.
‎He disclosed that the platform generated over N230 billion at the PTML Command within its first eight months of deployment, while cargo clearance timelines for compliant traders have been reduced to less than eight hours.
‎“The partnership, not the rivalry, between human and artificial intelligence is where the real value lies,” he said, adding that technology delivers optimal results when guided by strong institutional values and ethical standards.
‎Adeniyi further noted that although artificial intelligence enhances efficiency, risk management, and decision-making, human expertise and leadership remain indispensable to effective governance and enforcement.
‎“Technology changes processes  leadership and expertise still deliver the results,” he added.
‎The CGC also called for stronger collaboration among universities, research institutions, and public agencies to develop practical solutions to emerging digital and governance challenges.
He urged academic institutions to move beyond theoretical learning and play a more active role in innovation and policy development.
‎He identified areas where academia can support Customs modernisation efforts, including digital compliance systems, AI-driven risk management, public trust communication strategies, and the governance of cross border data flows.
‎Adeniyi further advocated for the development of digital governance frameworks tailored to African realities, legal systems, and developmental priorities, emphasising that technological advancement must remain accountable to the people it serves.
‎On the sidelines of the conference,the CGC engaged with heads of government agencies, scholars, communication professionals, traditional rulers, and institutional leaders on opportunities for collaboration in digital innovation, research, community development, and capacity building.
Continue Reading

Customs

Oshoba, Apapa Customs boss, charges officers on discipline, revenue, trade facilitation

Gloria Odion, Maritime reporter 

The Customs Area Controller (CAC), Nigeria Customs Service, Apapa Area Command, Comptroller Emmanuel Oshoba, has charged officers and men of the Command to intensify revenue generation, strengthen anti-smuggling operations and uphold professionalism and discipline in the discharge of their duties.

Comptroller Oshoba gave the charge during the Command’s monthly parade held on Tuesday, 12 May 2026, at the Command headquarters in Apapa, Lagos.

The Area Controller emphasized the need for greater operational interventions across terminals to block revenue leakages while ensuring seamless trade facilitation and timely cargo clearance.

“Officers must protect the reputation of the Service. That is why any delay by any officer concerning any consignment will not be tolerated.

“Even at the gates. If a consignment is duly exited, there should be no delay at the gates,” he stated.

He also urged officers to remain accessible and professional in their dealings with stakeholders.

“You must make yourself accessible to our stakeholders and we must avoid actions capable of tarnishing the good image of the Service and the good work being done by the CGC and members of his management.

“We should not be seen as slugs in the wheels of progress,” Oshoba added.

The CAC further called for heightened vigilance against smuggling activities, especially illicit drugs and prohibited items, while warning officers against misconduct and improper dressing.

Highlight of the parade was the recognition of outstanding Officers and Units for exemplary service.

Assistant Comptroller of Customs Ismail Mohammed emerged as the Most Outstanding Officer of the Month, while CSC Augustine Ondoma, ASCI Bukola Olaleye and IC Olalekan Salawu were recognized for professionalism, innovation and punctuality respectively.

Similarly, officers of APM Terminal received the Excellence Award on Enforcement, while Officers of ECO SUPPORT Terminal received the Excellence Award on Revenue Generation.

Comptroller Oshoba explained that the award initiative was introduced to encourage hard work, excellence, professionalism and healthy competition among Officers and Units of the Command.

Continue Reading

Trending