The federal government has ordered the immediate suspension of the 4 percent Free on Board (FOB) charge recently introduced by the Nigeria Customs Service (NCS) on imported goods.
The decision was conveyed in a memo signed by R. O. Omachi, permanent secretary for special duties in the office of the finance minister. According to the memo, the move followed “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”
Omachi explained that the suspension was necessary because the levy threatened Nigeria’s trade environment and economic stability. “It has become clear that the implementation of the 4% FOB charge poses significant challenges. Many importers and businesses raised concerns over the financial burden, with possible negative impacts on inflation, competitiveness, and the overall business climate,” he said.
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He added that halting the levy would allow for a thorough review of its framework and economic implications. “The Ministry of Finance looks forward to working with Customs and stakeholders to create a fairer and more efficient revenue structure that supports both growth and stability,” the statement read.
The 4 percent FOB levy had been announced by Customs on February 4, 2025, as a replacement for its 7 percent collection fee from the federation account and the one percent Comprehensive Import Supervision Scheme (CISS). Customs argued that the levy was essential to fund its technology upgrade and modernisation programme through its indigenous trade platform.
However, the Manufacturers Association of Nigeria (MAN) strongly opposed the move, warning it would sharply raise the cost of importing raw materials, machinery, and spare parts. The association urged the government to defer implementation until year-end to allow for an impact assessment.
Despite earlier consultations, Customs reintroduced the levy on July 23, sparking renewed protests from manufacturers and importers before the government’s latest intervention to suspend it.
