The Federal Government has suspended the recently introduced 4% Free-on-Board (FOB) levy on imported goods, following widespread concerns from businesses and trade experts.
In a directive issued Monday, Minister of Finance and Chairman of the Nigeria Customs Service (NCS) Board, Wale Edun, ordered the Comptroller-General of Customs to halt the collection of the levy with immediate effect.
The ministry explained that the decision came after extensive consultations with stakeholders, noting that the charge posed “significant challenges to Nigeria’s trade facilitation, business environment, and economic stability.”
Business Concerns
Importers and trade groups had warned that the levy would sharply increase costs, worsen inflation, and undermine Nigeria’s competitiveness. The FOB levy—calculated on the value of imports, including transportation to the port of loading—was reintroduced by the NCS in August to replace the 1% Comprehensive Import Supervision Scheme (CISS) and the 7% service charge.
A BusinessDay analysis showed that the levy increased import costs by as much as 186% for some items. The Importers Association of Nigeria (IMAN) further estimated it could add up to ₦4 trillion annually in freight costs, a burden ultimately borne by consumers.
Customs’ Position
NCS Comptroller-General Bashir Adeniyi had earlier defended the levy, arguing that proceeds would be channeled into technology investments. However, freight agents and stakeholders cautioned that its ripple effects would hurt businesses across the supply chain.
Next Steps
Edun said the suspension will allow for a full review of the levy’s framework and its broader economic impact. The government, he added, will work with Customs and relevant stakeholders to develop a “more equitable and efficient revenue structure that balances revenue generation with economic growth and stability.”
