The Federal Ministry of Finance has ordered the immediate suspension of the 4 per cent Free on Board (FOB) levy on imported goods, citing concerns over its potential impact on trade and economic stability.
The suspension, issued in Circular No. F6380/T3/12 dated 15th September 2025, was signed by the Ministry’s Permanent Secretary (Special Duties), R.O. Omachi, on behalf of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and addressed to the Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi.
The Ministry warned that the levy could negatively affect trade facilitation, price stability, and the overall business environment in Nigeria. The circular stated:
“Pursuant to the powers vested in the Honourable Minister of Finance and Coordinating Minister of the Economy under Part III, Section 12 of the Nigeria Customs Service Act, 2023, I hereby direct the immediate suspension of the collection of the 4% FOB charge recently levied by the Nigeria Customs Service on all imported goods.
Following consultations with industry stakeholders, trade experts, and relevant government officials, it has become clear that the levy presents significant challenges to trade facilitation and economic stability. Importers and businesses have expressed concerns over the increased financial burden, which could adversely affect inflation, trade competitiveness, and the overall business climate.
This suspension allows for comprehensive stakeholder engagement and a detailed review of the levy’s framework. The Ministry looks forward to collaborating with the Service and all relevant parties to develop a fair and efficient revenue structure that supports both economic growth and revenue generation. Ensure strict compliance, please.”
The 4% FOB levy, recently introduced by the Customs Service, had sparked backlash from private sector groups and economists who warned of its adverse economic impact. The suspension is viewed as a responsive step by the government to balance revenue generation with business confidence and macroeconomic stability.
