The Federal Government has suspended the implementation of the recently introduced four per cent Free on Board (FOB) levy on all imported goods.
The decision was announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following widespread criticism from importers, trade experts, and industry stakeholders who warned of the levy’s negative impact on the economy.
In a letter dated Monday, September 15, 2025, and addressed to the Comptroller-General of Customs, Edun—acting in his capacity as Chairman of the NCS Board—directed the immediate suspension of the policy. The letter, signed by the Permanent Secretary for Special Duties in the Ministry of Finance, Raymond Omachi, explained that extensive consultations with stakeholders revealed the levy would impose a heavy strain on trade and 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 repeatedly warned that the levy would worsen inflation, raise the cost of goods, and undermine Nigeria’s competitiveness in international trade. Many also argued it would frustrate efforts to ease the cost of doing business in the country.
According to the ministry, the suspension provides room for further engagement with stakeholders and a comprehensive review of the levy’s framework and long-term implications.
In April 2025, the Comptroller-General of Customs, Adeniyi, announced plans to reintroduce the levy after consultations. However, the proposal drew swift backlash from traders, shipping companies, and manufacturers, who argued the charge would erode investor confidence and reduce Nigeria’s attractiveness as a trading hub.
The ministry clarified that the suspension was not a cancellation but a pause to reassess the policy. It stressed 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.
The government is expected to hold further consultations with trade groups, freight forwarders, and importers to design a fairer system. Analysts believe the review period offers a chance to align Customs policies with broader economic reforms aimed at stabilising the naira, reducing inflation, and improving Nigeria’s ease of doing business.
For now, importers have welcomed the suspension as a relief in a tough economic climate, though experts caution that future revenue measures must be carefully designed to avoid disruptions in trade and investment flows.