Abuja, Nigeria — The Federal Government has ordered the immediate suspension of the controversial Free On Board (FOB) levy on all imported goods, just weeks after its introduction. The directive was issued late on Monday by Finance Minister Wale Edun in response to widespread concerns from businesses and importers.
The 4% FOB charge, which was implemented last month by the Nigeria Customs Service (NCS), has been a subject of intense criticism. Business groups and importers warned that the levy would escalate the cost of goods, fuel inflation, and harm Nigeria’s trade competitiveness. This comes at a critical time when the country is working to stabilize its currency and stimulate economic recovery.
A Comprehensive Review to Follow
In his statement, Minister Edun explained that the decision to suspend the levy came “after extensive consultations with industry stakeholders, trade experts, and relevant government officials.” He noted that “it has become clear that the implementation of the 4% FOB charge poses significant challenges to Nigerian trade facilitation, the business environment, and economic stability.”
The suspension will allow for a comprehensive review of the levy’s framework and its broader economic implications. The ministry stated that it would work with the customs service and other key stakeholders to develop a more “equitable and efficient revenue structure.” This move is expected to alleviate pressure on businesses and provide a much-needed boost to the nation’s economic recovery efforts.
