The federal government has suspended the controversial free on board (FOB) levy on imported goods, barely weeks after its introduction by the Nigeria Customs Service (NCS).
In a memo obtained by TheCable, R. O. Omachi, permanent secretary for special duties in the office of the minister of finance and coordinating minister of the economy, announced the suspension, citing “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”
The levy, pegged at 4% of the FOB value of imports, had sparked outrage among importers and business groups who warned that it would escalate costs, fuel inflation, and hurt Nigeria’s trade competitiveness.
Omachi noted that the decision was taken to ease the financial pressure on businesses and create room for fresh deliberations.
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“It has become clear that the implementation of the 4% FOB charge poses significant challenges to Nigeria’s trade facilitation, environment, and economic stability,” the memo stated.
The suspension, according to the ministry, will allow for a comprehensive review of the levy’s framework and wider economic implications. The government pledged to work with the NCS and other stakeholders to design a “more equitable and efficient revenue structure” that balances revenue generation with economic growth and stability.
The finance minister, who also chairs the Customs board, is expected to engage industry groups in coming weeks to draft a new model for customs revenue collection.
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