Customs; Clearing Agents Demand Percentage from 4% FOB Levy and Licensing Fee Hikes
Reactions have been swift to the Nigeria Customs Service’s latest moves, including a proposed 4% FOB levy on all imported consignments and a significant uptick in licensing fees. Clearing agents—who play a crucial role in moving goods through borders—are calling for rewards, compensation, and a clearer path to revenue that recognises their contributions to national development.
Reactions on….
- The 4% FOB levy: Clearing agents argue that the new levy, which Customs plans to earmark from FOB values, should come with a corresponding reward or compensation plan. They contend that the NCS Act 25 of 2023 imposes obligations and contributions on clearing agents for national development without providing any compensation mechanism for their efforts.
- Licensing fee hikes: Alongside the levy, a proposed increase in the cost of clearing licenses—from N515,000 to as high as N10 million—adds to the financial burden on practitioners. Industry voices describe the move as heavy and potentially delisting several licenses without mitigating safeguards.
- The need for a structured reward system: Frontline clearing agent Alhaji Ayo Sulaiman, Special Adviser to the National President of the Association of Nigerian Licensed Customs Agents (ANLCA), laments the lack of policies to cushion practitioners from policy shocks. He calls for a reward and compensation framework to accompany the new revenue measures.
- The Authorised Economic Operator (AEO) status concerns: Sulaiman notes that the AEO program, which grants certain privileges to trusted operators, imposes numerous requirements on clearing agents seeking status. This adds to the burden on those representing consignors and importers.
- Calls for urgent dialogue and visible action: Sulaiman advocates sending a high-powered delegation to the National Assembly to discuss overdue rewards and compensation. He suggests a televised public hearing where Customs brokers’ needs and wants can be presented to the government, with a concrete compensation plan tied to government revenue.
- The need for unity among associations: A leader from the Africa Association of Professional Freight Forwarders and Logistics (APFFLON) warns that a lack of unity among freight forwarders could weaken their negotiating position. He urges ANLCA’s leadership to convene a united meeting of all associations to present a cohesive stance to Customs and the government.
- The risk to industry stability: The APFFLON representative argues that if associations fail to align, different positions at future meetings could lead to outcomes favourable to the government’s funding needs, rather than the agents’ practical concerns.
- “The NCS ACT 25 of 2023 coerced us as customs representatives without any provision for any reward or compensation plan, while customs will pocket 4% of FOB values; the NCS ACT imposes OBLIGATIONS, RESPONSIBILITIES and CONTRIBUTIONS to National development without a single provision for reward and compensation for our efforts.”
- “The association, in collaboration with others (Customs Brokers only), should call for a televised public hearing in the industry to submit Customs brokers’ needs and wants to FGN through HOR as stated above, including an overdue compensation plan on revenue paid to the government.”
- “The Customs must first dangle a carrot before the clearing agents, even as he argued that agents are victims of the current economic realities.”
- “I doubt if we can get the best negotiation with the Customs on these proposed rates. This is because the freight forwarding associations are not united and do not speak in one voice. At this rate, everyone would go back to that meeting in two weeks with different positions, and the Customs would win because the federal government seriously needs money.”
- “I am expecting the President of ANLCA to show leadership by convening a meeting of all associations, let us come together to discuss, analyse, and put forward a united position.”
As policy makers consider the 4% FOB levy and substantial licensing fee increases, clearing agents are calling for a formal rewards-and-compensation framework that aligns with their role as revenue drivers for the economy. They advocate for unity among associations and direct engagement with the National Assembly to push for measurable relief and fair treatment. The outcome of these discussions could shape how efficiently imports move through Nigerian ports and how equitably the burdens of revenue generation are shared across stakeholders.
- Add subheadings to improve scannability (e.g., “The Levy and Licensing Fees,” “Calls for Compensation,” “AEO Concerns,” “Unity and Advocacy,” “Looking Ahead”).
- Include brief recommendations for readers (e.g., how practitioners can prepare for hearings, how to engage with ANLCA or APFFLON, or what data to collect to support compensation arguments).
- Add a call to action, such as inviting readers to share their experiences or to participate in upcoming industry forums.