THE Federal Government has ordered the immediate suspension of the 4% Free on Board (FOB) import levy, barely a month after it was introduced by the Nigeria Customs Service (NCS).
In a statement released late yesterday, the Minister of Finance Wale Edun said the decision followed “extensive consultations with industry stakeholders, trade experts, and government officials.”
He explained that the levy’s implementation had raised serious concerns about trade facilitation, business competitiveness, and economic stability.
Importers and business groups had warned that the charge would push up the cost of goods, worsen inflation, and undermine Nigeria’s fragile economic recovery.
Many companies also argued it would increase operational costs and further weaken trade competitiveness at a time when the country is battling currency volatility and sluggish growth.
According to the Finance Ministry, the suspension will allow for a comprehensive review of the levy’s framework and its wider economic impact.
The government pledged to work with customs and other stakeholders to design a more “equitable and efficient revenue structure” that balances fiscal needs with economic realities.
The levy, introduced in August, was meant to serve as an additional revenue source but quickly drew backlash from the business community.