The Federal Government has ordered the immediate suspension of the contentious 4% Free On Board (FOB) levy imposed on all imported goods, following mounting pressure from the business community and trade experts.
Finance Minister Wale Edun issued the directive late Monday, citing serious concerns raised by importers, manufacturers, and economic stakeholders over the levy’s potential impact on Nigeria’s fragile economy.
“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 in an official release.
The now-suspended levy, introduced by the Nigeria Customs Service (NCS) just weeks ago, was met with immediate resistance from business groups who argued it would raise import costs, worsen inflation, and undermine the government’s efforts to stabilise the naira and boost economic recovery.
Industry representatives warned that the added cost burden would not only increase prices for consumers but also further discourage investments and trade competitiveness in a time of economic strain.
The Ministry of Finance added that the suspension is part of a broader effort to reassess the levy’s structure and explore alternatives that balance revenue generation with trade facilitation.
“The temporary suspension will allow for a comprehensive review of the levy’s framework and its broader economic implications,” the ministry stated, noting that it would work closely with the Nigeria Customs Service and other stakeholders to develop a more equitable and efficient revenue system.
The move is expected to ease tensions within the business community and comes at a time when the government is facing heightened scrutiny over economic policy decisions that have led to rising inflation, currency fluctuations, and high operational costs for Nigerian companies.
