FG suspends 4% FOB levy on imports

The Federal Government has suspended the 4% Free on Board (FOB) levy recently introduced by the Nigeria Customs Service (NCS) on imported goods, effective immediately.

This was disclosed via a memo issued by the Permanent Secretary, Special Duties, Office of the Minister of Finance and Coordinating Minister of the Economy, R. O. Omachi.

Omachi stated that the decision followed “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”

According to Omachi, the suspension was necessary as the levy posed “significant challenges” to trade facilitation 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 read.

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Omachi added that the pause would allow for “comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications.”

The Ministry of Finance said it will work with the Customs Service and other stakeholders to develop “a more equitable and efficient revenue structure” that supports both revenue generation and economic growth.

The NCS had first announced plans to introduce the 4% levy on February 4, 2025, later suspending it for consultations.

On July 23, 2025, the service announced it would replace its 7% collection fee from the federation account and the 1% Comprehensive Import Supervision Scheme (CISS) with the new charge to fund its technology and modernisation programme.

However, the Manufacturers Association of Nigeria (MAN) opposed the move, warning that it would raise the cost of importing raw materials, machinery, and spare parts not available locally.

The association urged the government to delay implementation until December 31, 2025, to allow for a proper impact assessment.

Customs Comptroller-General Adewale Adeniyi had projected that the 4% FOB levy would contribute N1.07 trillion to the service’s N6.58 trillion revenue target for 2025.

The Star