The Federal Government has suspended the newly introduced 4 percent free-on-board (FOB) levy collected by the Nigeria Customs Service (NCS) on imports, with immediate effect.
Gatekeepers News reports that in a memo obtained by TheCable, R. O. Omachi, Permanent Secretary for Special Duties in the Ministry of Finance, said the decision followed “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”
Omachi, writing on behalf of the Minister of Finance and Coordinating Minister of the Economy — who also chairs the board of Customs — said the levy had triggered widespread concern.
“It has become clear that the implementation of the 4% FOB charge poses significant challenges to Nigeria’s trade facilitation environment and economic stability. 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,” the memo stated.
He added that the suspension would allow for broader consultation and a review of the levy’s framework.
“The suspension will provide an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications. 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 said.
Background on the Levy
The 4 percent FOB charge was first announced by the NCS on February 4, 2025, but later suspended pending consultations. On July 23, the Customs Service said it would reintroduce the charge as a replacement for its 7 percent collection fees from the federation account and the 1 percent Comprehensive Import Supervision Scheme (CISS).
Customs argued that the levy was necessary to fund its technology upgrades and modernisation programme, projecting that it could yield about N1.07 trillion toward its 2025 revenue target of N6.58 trillion. The Senate later raised that target to N10 trillion.
Industry Opposition
The Manufacturers Association of Nigeria (MAN) strongly opposed the reintroduction of the levy, warning that it would sharply increase the cost of importing raw materials, machinery, and spare parts unavailable locally. MAN urged the government to suspend the policy until at least December 31, to allow for an impact assessment and stakeholder dialogue.
With the new suspension, further consultations are expected before any final decision on the levy’s future is made
