The Federal Government has suspended the implementation of the four per cent Free on Board (FOB) levy recently introduced by the Nigeria Customs Service (NCS) on all imported goods into the country.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who made this disclosure on Monday, said that the suspension of the levy was sequel to concerns from importers, trade experts, and other industry stakeholders about the levy’s negative economic implications.
The minister in a letter written in his capacity as Chairman of the NCS Board, dated September 15, 2025, and addressed to the Comptroller-General of Customs, ordered the immediate suspension of the levy.
The letter, which was signed by the Permanent Secretary for Special Duties in the Ministry of Finance, Mr Raymond Omachi, clarified that extensive consultations had been held by the minister with stakeholders and experts, whose feedback showed that the levy would hamper the nation’s merchandize trade and the economy.
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It stated: “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.”
According to the ministry, the suspension aims to create room for further engagement with all relevant stakeholders and a comprehensive review of the levy’s framework and long-term impact on the economy.
It maintained that the suspension was not a cancellation but a suspension of the implementation of the levy with a view to reassessing the levy’s potential effects on the nation’s merchandize trade prospects and the revenue generation from the source.
The letter further stated: “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.”
Following the suspension of the levy, government is expected to parley with stakeholders in the merchandize trade, including freight forwarders, importers, and industrialists to agree on a fairer fiscal option that will not overburden business owners and consumers.
It would be recalled that the Comptroller-General of Customs in April this year hinted of the plans by the fiscal authorities to reintroduce the four per cent levy calculated on the Free on Board value of imports.
However, the announcement has since then been facing mounting opposition from traders, shipping companies, OPS advocacy groups and manufacturing associations, who maintained that the levy would reduce Nigeria’s attractiveness as a trading hub and undermine efforts by the government to ease the cost of doing business in the country.
