The federal government has announced the immediate suspension of the newly introduced free on board (FOB) levy collected by the Nigeria Customs Service (NCS) on imported goods. The decision, communicated in a memo by R. O. Omachi, the permanent secretary for special duties in the office of the minister of finance and coordinating minister of the economy, follows “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”
The minister of finance, who also chairs the board of customs, has observed significant challenges arising from the implementation of the 4% FOB charge, which is seen to threaten Nigeria’s trade facilitation environment and economic stability. Numerous importers and businesses have expressed concerns about the increased financial burden posed by the levy, potentially leading to adverse effects on inflation, trade competitiveness, and the overall business climate in the country.
Omachi stated that the suspension will allow for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its wider economic implications. The Ministry of Finance is committed to collaborating closely with the NCS and all relevant parties to develop a more equitable and efficient revenue structure that fosters both revenue generation and economic growth and stability.
Originally announced by the NCS on February 4, the implementation of the 4% FOB charge had been met with resistance, leading to the current suspension to accommodate further discussions and assessment.
Nevertheless, on July 23, 2025, the NCS revealed plans to replace the existing seven percent collection fees from the federation account and one percent CISS with the 4% FOB levy at the port. The NCS argued that the introduction of the indigenously developed trade platform necessitated the reimposition of the levy to enhance operational efficiency and finance its technology modernization program.
The Manufacturers Association of Nigeria (MAN) has voiced strong opposition to the reintroduction of the 4% FOB charge, cautioning that the policy would significantly escalate the costs of importing essential raw materials, machinery, and spare parts that are not locally available. The association has urged the NCS and the government to delay the implementation until December 31 to allow for an adequate impact assessment and further consultations with all stakeholders.