The Federal Government has ordered the immediate suspension of the 4% Free On Board (FOB) levy on all imported goods, following widespread backlash from the business community and industry stakeholders.
In a statement issued late Monday, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directed the Nigeria Customs Service (NCS) to halt the implementation of the import levy, which was introduced last month.
The decision came after sustained pressure from importers, manufacturers, and trade groups who warned that the additional charge would increase the cost of doing business in Nigeria, exacerbate inflation, and undermine efforts to stabilise the naira.
“Following extensive consultations with industry stakeholders, trade experts, and relevant government officials, it has become clear that the implementation of the 4% FOB charge poses significant challenges to Nigerian trade facilitation, the business environment, and economic stability,” Edun stated.
The controversial levy required importers to pay an extra 4% charge based on the Free On Board value of all imported goods. FOB refers to the cost of goods excluding freight and insurance, essentially the price at the port of origin. Critics argued that the extra duty was ill-timed and would drive up consumer prices while threatening Nigeria’s fragile economic recovery.
Business groups, including the Lagos Chamber of Commerce and Industry (LCCI), had urged the government to scrap the levy, saying it contradicted the Tinubu administration’s pledge to create a more business-friendly environment.
In response to these concerns, the Ministry of Finance said the suspension of the levy would pave the way for a comprehensive review of its framework and broader economic implications. Edun assured stakeholders that the government would work collaboratively with the NCS and other agencies to design a more “equitable and efficient revenue structure.”
