Abuja, Nigeria | Tuesday, September 16, 2025
The Federal Government has ordered the immediate suspension of the 4% Free on Board (FOB) levy recently introduced by the Nigeria Customs Service (NCS), following widespread concerns raised by industry stakeholders.
The Ministry of Finance, which announced the decision on Tuesday, explained that the suspension came after extensive consultations with representatives of the business community, importers, exporters, and trade associations. Many stakeholders had warned that the levy, if enforced, would have adverse effects on inflation, trade competitiveness, and overall business costs.
The 4% FOB levy, introduced earlier this year, was designed as part of Customs’ revenue generation measures but quickly drew criticism from operators who argued that it would further burden importers, raise commodity prices, and erode Nigeria’s ability to compete in regional and global markets.
In its statement, the Finance Ministry said the government remains committed to striking a balance between revenue generation and creating an enabling business environment. It added that while reforms in the trade and customs sector are necessary, they must not stifle productivity or worsen the economic hardship already faced by Nigerians.
Industry players, including members of the Manufacturers Association of Nigeria (MAN) and freight forwarders, have welcomed the suspension, describing it as a relief for businesses grappling with high operational costs. They urged the government to explore alternative revenue channels that do not directly undermine trade activities or consumer purchasing power.
The government assured that further engagements with stakeholders would continue in order to design policies that support both fiscal sustainability and economic growth. Meanwhile, the NCS has been directed to halt all enforcement of the levy until further notice.
