The federal government has suspended the four percent free-on-board (FOB) levy recently introduced by the Nigeria Customs Service (NCS) on imported goods, citing concerns over its impact on trade and economic stability.
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. He explained that the decision followed “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”
“Many importers and businesses have raised concerns about the increased financial burden this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria,” Omachi said in a memo released Monday.
The Ministry of Finance noted that the suspension will allow for a comprehensive review of the levy’s framework and economic implications, with plans to work closely with Customs and stakeholders to design a more balanced revenue structure. “The Ministry of Finance looks forward to working closely with the Service and all relevant parties to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability,” Omachi added.
The NCS had first announced plans for the 4% FOB levy on February 4, positioning it as a replacement for the existing 7% collection fee and 1% CISS. Comptroller-General of Customs, Adewale Adeniyi, projected that the levy would generate ₦1.07 trillion toward the Service’s 2025 revenue target of ₦6.58 trillion a target later increased by the Senate to ₦10 trillion.
Customs argued the levy was necessary to fund its technology and modernization programme, including the development of an indigenous trade platform. However, the policy faced stiff opposition. The Manufacturers Association of Nigeria (MAN) warned it would escalate the cost of importing raw materials, machinery, and spare parts, urging a halt until at least December 31 for proper impact assessment.
The levy was briefly suspended earlier in the year following initial backlash but was reintroduced on July 23, 2025. With this latest suspension, its future now hangs in the balance pending further consultations.
