The Federal Government of Nigeria has suspended the 4% Free on Board (FOB) levy on imported goods following strong backlash from businesses and trade groups who warned it would increase costs and harm the economy.
The decision was announced late on Monday through a directive issued by Finance Minister Wale Edun, who ordered the Nigeria Customs Service (NCS) to immediately halt the implementation of the levy, which had been introduced last month.
Edun explained that the suspension followed extensive consultations with industry stakeholders, trade experts, and government officials, which revealed that the levy was detrimental to trade facilitation and economic stability.
“It has become clear that the implementation of the 4% FOB charge poses significant challenges to Nigerian trade facilitation, the business environment, and overall economic stability,” Edun stated.
Importers and business associations had voiced concerns that the levy would raise the cost of goods, fuel inflation, and undermine Nigeria’s trade competitiveness, especially at a time when the government is working to stabilize the currency and revive sluggish growth.
The finance ministry said the suspension would allow for a comprehensive review of the levy’s framework and its potential economic impact.
It also pledged to work with the Customs Service and other stakeholders to design a fairer and more efficient revenue system that would not stifle trade or burden businesses.
Nigeria, Africa’s largest economy, has been pushing to increase non-oil revenues amid declining crude production and rising fiscal pressures. However, the private sector has repeatedly pushed back against arbitrary levies, arguing that such policies complicate trade and drive up operating costs.
The suspension of the levy is seen as a relief for importers and a positive signal to investors concerned about the ease of doing business in Nigeria.
