The federal government has announced the immediate suspension of the four percent free-on-board (FOB) levy recently imposed by the Nigeria Customs Service (NCS) on imported goods.
The directive was issued by R. O. Omachi, Permanent Secretary, Special Duties in the Office of the Minister of Finance and Coordinating Minister of the Economy.
According to the memo, the implementation of the 4% FOB charge “poses significant challenges to trade facilitation, economic stability, and the business environment in Nigeria.”
Omachi noted that many importers and businesses had expressed concerns over the additional financial burden the levy would create, warning that it could adversely affect inflation, trade competitiveness, and overall economic growth.
The suspension, the memo explained, will allow for a thorough review of the levy’s framework and its wider economic implications.
The Ministry of Finance said it intends to work closely with the Customs Service and all relevant parties to develop a more balanced and effective revenue structure that ensures both sustainable government income and economic stability.