.Says over $500bn paid within short period of its introduction
.Suspended FOB levy is backed by law– CGC Adeniyi Insists
ZAINAB JUNAID
The National Coordinator of Save Nigeria Importers, Freight Forwarders and Exporters Coalition, SNIFFIEC, Chief Osita Patrick Chukwu, has challenged the Comptroller-General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, to refund the payment made by importers who have captured their containers using the newly introduced 4 per cent Free On Board (FOB) charge, if the Service claims to have suspended the levy.
Chief Osita made this charge on Wednesday at a short briefing held in his office, Apapa, Lagos, claiming that over $500 billion had been paid within the short period of introducing the new levy, which he considered a huge amount and loss.
According to him, “If Customs claims to have suspended the levy, they should refund those who have captured with the levy. Besides, apart from the CIS (Comprehensive Inspection Supervision Scheme) 1 per cent of value declared CIF, the 4 per cent charge was a derivation from duty payments, but they went and change it to FOB charge to suit them in order to meet their revenue target. It was a twisting of the law. The claim that they consulted us is a total fallacy,” he argued.
It could be recalled that the Nigeria Customs Service (NCS) suspended the 4% Free-on-Board (FOB) levy on imports due to intense opposition from stakeholders, including the Manufacturers Association of Nigeria and the Nigeria Employers’ Consultative Association (NECA).
This development allows for comprehensive consultations between the Minister of Finance, Olawale Edun, and other relevant parties.
Addressing journalists in his office, Chief Osita insisted that the law was dead on arrival and should not be brought back to life. “The policy has killed many people,” he said.
“How can he allow the 4 per cent FOB to be implemented in the first place after collecting a 7 per cent surcharge? He is in a position to advise the government on the likely impacts of the policy before it is allowed to go into law. He should have notified them that there would be a catastrophe. Besides, when he cannot advise the government, then he should resign, especially if he feels he is for the people. It is when he takes that bold step that we will beg him to come back.
“When they want to defend this act, they say this 4 per cent was a derivation from the duty they are collecting, but when they went, recap and changed it, without consultation, they created problems for us all. We have threatened to go to court, which is why they suspended it. But we are saying we do not want suspension, but total eradication. It should not be implemented at all.
“Indeed, I’m calling for his resignation, he cannot say he is not aware that the country is in a big mess, the maritime especially, with all the policies affecting the citizens. The golden fish can never leave the river or sea. If he goes, there will be another better golden one.”
Chief Osita claimed that clearing fees at ports skyrocketed as a result of the new fee introduced, citing over N27million he used to clear a container filled with school materials to be used in a university last Friday.
“The container just left on Friday,” he said. “We have been craving for help with no one to help, and yet you people continued to praise the CGC. Let them take up the work like the Shippers. Almost everything the government imports, including the presidency, is free. If they are paying, they will know what we are going through. They should know that only change can be constant; other things are temporary,” he challenged.
Speaking further, the Save Nigeria Coordinator also charged the CGC to set up a standard committee, to be called the Resolution Committee, to help look into crises at the Port and be there for the citizens. He said their duty would be to resolve any salient issues between the Shippers and the People.
“He should find out why people are not clearing or finding it difficult to clear their containers for one to two years. Not to just auction them out unnecessarily. Once containers are not cleared, what you hear next is auction without resolving issues at hand. Why can’t he help us? Why implicate issues for us?”
Meanwhile, the Comptroller-General of Customs insisted that the suspended 4% FOB levy was backed by law and was not a new law of the Service.
While fielding questions from journalists at the Iconic Maritime Personality Award Dinner in Ikeja on Thursday, CGC Adewale maintained that the levy was a provision of an Act that had been in existence since 2023, which was used under a regime of service provision offered by a service provider as at 2023.
“By 2024, we are exiting the contractual agreement, and we felt that would be a time for us to begin the implementation of 4 per cent FOB,” the CGC stated.
The suspension of the levy is seen as a temporary measure to allow further consultations and reviews and NCS has announced that it will communicate the revised implementation timeline following the conclusion of stakeholder consultations.
