The Federal Government has suspended the four per cent Free on Board (FOB) levy recently introduced by the Nigeria Customs Service on imported goods, following widespread criticism from importers, trade groups, and economic experts.
The suspension was confirmed in a directive issued on Monday, September 15, 2025, by the Minister of Finance and Coordinating Minister of the Economy, who chairs the Customs Board. The letter, signed by the ministry’s Permanent Secretary for Special Duties, instructed the Comptroller-General of Customs to halt implementation with immediate effect.
According to the finance ministry, extensive consultations with stakeholders revealed that the levy would place a heavy strain on trade and the wider economy. Officials acknowledged concerns that the measure risked worsening inflation, raising the cost of goods, and weakening Nigeria’s competitiveness in regional and global trade.
The levy, which was set at four per cent of the Free on Board value of imports, had been announced earlier this year after consultations with select stakeholders. However, its reintroduction quickly triggered backlash from business operators, shipping companies, and manufacturers, who argued that it would erode investor confidence and complicate efforts to lower the cost of doing business in the country.
Industry experts warned that the policy could disrupt trade flows and further burden import-dependent sectors already grappling with currency instability and rising costs. Analysts also cautioned that such measures risk undermining broader economic reforms aimed at stabilising the naira and easing inflationary pressures.
In its statement, the finance ministry clarified that the suspension does not amount to cancellation. Instead, it is a pause to allow for further dialogue with stakeholders and a comprehensive review of the levy’s long-term implications. The ministry stressed its commitment to designing a revenue framework that balances government income with trade facilitation and economic growth.
“The Ministry of Finance looks forward to working closely with the Nigeria Customs Service and all relevant stakeholders to develop a more equitable and efficient revenue structure—one that supports fiscal sustainability without undermining trade or business confidence,” the statement read.
Importers and trade associations have welcomed the suspension as a timely relief in a challenging economic climate, while urging the government to use the review period to create policies that genuinely support enterprise growth.
Observers note that the coming months will be critical, as authorities weigh the need to generate revenue against the imperative of sustaining a stable, business-friendly environment. For many businesses, especially small and medium-sized enterprises, the outcome will determine whether Nigeria strengthens its position as a regional trade hub or risks pushing investors elsewhere.
