Nigeria’s Minister of Finance, Wale Edun, has ordered the immediate suspension of the 4% Free on Board (FOB) levy on imported goods, effective immediately. The decision comes after widespread concerns were raised by manufacturers, importers, and customs agents, who argued that the levy would worsen inflation, undermine trade competitiveness, and deter investment.
The minister directed the Nigeria Customs Service to halt the implementation of the levy, citing its potential negative impact on trade facilitation, economic stability, and the business climate in Nigeria.
The suspension will allow for comprehensive stakeholder consultations and a thorough review of the levy’s framework and economic implications.
According to Edun, the review aims to establish a more equitable and efficient revenue structure that balances government revenue needs with sustainable economic growth. The Comptroller-General of Customs has been instructed to ensure strict compliance with the suspension order.
The 4% FOB levy was introduced earlier in 2025 to replace existing fees, with the goal of providing a more sustainable funding mechanism for the Nigeria Customs Service. However, strong opposition from industry stakeholders led to its suspension.
Key Points:
- Suspension of 4% FOB Levy: Immediate suspension of the levy on imported goods
- Reason for Suspension: Potential negative impact on inflation, trade competitiveness, and investment climate
- Next Steps: Comprehensive review of the levy’s framework and economic implications
- Objective: Establish a more equitable and efficient revenue structure
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