NCMDLCA Seeks Review Of Nigeria Customs Service Act To Curb Rising Port Costs.
The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has urged President Bola Ahmed Tinubu to establish a committee to review the Nigeria Customs Service (NCS) Act 2023, citing concerns over escalating port costs that threaten trade competitiveness. In a letter signed by NCMDLCA National President Lucky Amiwero, the group highlighted the Act’s financial framework, particularly the four per cent Free-on-Board (FOB) import levy and additional charges, as a burden on importers and businesses.
The NCMDLCA argued that sections 18, 24, and 44 of the Act, which introduce cost-based user fees, advance ruling fees, and special service charges, contravene international trade facilitation standards, including those set by the World Trade Organisation and the World Customs Organisation. The letter, copied to key government figures including the Senate President and the Minister of Finance, warned that these charges risk inflating port costs, discouraging investment, and undermining Nigeria’s position in regional trade.
Drawing a comparison with Ghana’s customs model, the NCMDLCA praised its transparent and cost-efficient approach, where importers pay a capped one per cent inspection fee on the cost, insurance, and freight (CIF) value. Ghana’s system, funded by a share of import duties and value-added tax, ensures accountability and prevents arbitrary cost increases, offering a blueprint for Nigeria to emulate.
The group also raised concerns about Section 59 (30) of the Act, which shifts the responsibility for maintaining non-intrusive inspection (NII) scanners to terminal and warehouse operators. Without clear guidelines, this could lead to uneven scanner deployment, inspection delays, and further cost hikes, contradicting trade facilitation principles. The NCMDLCA called for an expert committee to align Nigeria’s customs system with global best practices and reduce port costs, which are among the highest in West and Central Africa.
The appeal comes amid broader tensions, with the Nigeria Customs Service proposing a 20-fold increase in licensing fees for agents, from N515,000 to N10 million, sparking fears of higher costs trickling down to consumers. Industry voices, including importer Frank Onyebu, warned that such reforms could overburden businesses already grappling with economic challenges.
As Nigeria seeks to enhance its trade competitiveness, the NCMDLCA’s push for a review underscores the need for a balanced approach to customs reforms. The group’s call for harmonised regulations and cost reductions reflects a growing demand for policies that support businesses and bolster economic growth.
