Garba Mohammed
The Federal Government has suspended the implementation of the four per cent Free on Board (FOB) levy recently introduced by the Nigeria Customs Service (NCS) on all imported goods.
The decision, announced by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, followed widespread concerns from importers, trade experts, and industry stakeholders over the levy’s potential negative impact on the economy.
In a letter dated Monday, September 15, 2025, addressed to the Comptroller-General of Customs, Mr. Edun—acting as Chairman of the NCS Board—ordered the immediate suspension of the levy. The letter, signed by Raymond Omachi, Permanent Secretary for Special Duties in the Ministry of Finance, explained that extensive consultations with stakeholders revealed that the levy could strain trade and weaken economic stability.
“Following extensive consultations with industry stakeholders, trade experts, and relevant government officials, it has become clear that the implementation of the levy poses significant challenges to trade facilitation, the business environment, and overall economic stability,” the letter stated.
Importers and business operators had warned that the levy would worsen inflation, increase the cost of goods, and reduce Nigeria’s trade competitiveness, complicating efforts to ease the cost of doing business.
The Ministry of Finance said the suspension allows for further engagement with stakeholders and a comprehensive review of the levy’s framework and long-term economic impact.
In April 2025, the Comptroller-General of Customs, Adeniyi, had announced plans to reintroduce the levy, calculated on the FOB value of imports. The move had been widely criticised by traders, shipping companies, and manufacturing associations for its potential to erode investor confidence.
The ministry clarified that the suspension is not a cancellation, but a pause to reassess the levy. It emphasised the government’s commitment to balancing revenue generation with economic growth.
“The Ministry of Finance looks forward to working closely with the Nigeria Customs Service and all relevant parties to develop a more equitable and efficient revenue structure—one that supports government income without undermining trade or economic stability,” the statement added.
Further discussions with trade groups, freight forwarders, and importers are expected to design a fairer system that does not overburden businesses. Analysts say this review period offers an opportunity to align customs policies with broader economic reforms aimed at stabilising the naira, reducing inflation, and improving Nigeria’s ease of doing business ranking.
Importers have welcomed the suspension as relief in a challenging economic environment, while industry experts caution that any future revenue measures must be carefully calibrated to avoid disruptions in trade and investment flows.