The Federal Government has ordered the suspension of the four percent free on board (FOB) levy earlier introduced by the Nigeria Customs Service on imported goods.
Naijaonpoint reports that the directive, which takes effect immediately, was communicated through a memo from the office of the Minister of Finance and Coordinating Minister of the Economy.
The decision followed consultations with industry players, trade experts, and government officials.
Authorities explained that the levy was creating difficulties for importers and businesses, adding more financial pressure that could affect inflation, competitiveness, and the business climate in the country.
The ministry said the suspension will allow time for wider discussions and a review of the levy’s framework to ensure a fairer revenue plan that balances government earnings with trade and economic growth.
The memo read in part: “It has become clear that the implementation of the 4% FOB charge poses significant challenges to the Nigerian trade facilitation, environment and economic stability. Many importers and businesses have raised concerns about the increased financial burden this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria.
“The suspension will provide an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications.”