Nigeria’s finance ministry has suspended the controversial 4% Free on Board (FOB) levy on all imported goods.
Finance Minister Wale Edun issued the directive late Monday, citing strong resistance from businesses already battling inflation and high operating costs.
“Following extensive consultations with industry stakeholders, trade experts, and relevant government officials, 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,” Edun said.
Business Groups Welcome Relief
Importers and business groups had warned that the levy would raise the cost of goods, worsen inflation, and hurt Nigeria’s trade competitiveness.
The ministry said the suspension would allow for a broader review of the levy’s framework and economic impact. It promised to work with customs and industry players to design a more “equitable and efficient revenue structure.”
The Nigeria Employers’ Consultative Association (NECA) praised the suspension. Its Director General, Adewale-Smatt Oyerinde, said the move shows government’s resolve to back private sector growth.
He recalled that the recent withdrawal of the proposed 5% telecom tax also underscored the administration’s determination to protect jobs and competitiveness.
“It is instructive and important that other Agencies and Departments of the Federal and State Governments align their actions with the Renewed Hope Agenda of the administration by reversing unnecessary and cumbersome charges and levies that do nothing but add to the burden of organised businesses, thus sabotaging the current administration’s effort at growing the economy,” he said.
Call for Action Beyond Customs
Oyerinde added that some agencies, such as the Financial Reporting Council of Nigeria, still ignore presidential directives to suspend certain levies. He warned that such defiance remains “worrisome and unacceptable” to Nigeria’s trading community.
NECA urged Customs to immediately implement Edun’s suspension order and called for consistency across government departments.
Nigeria has been seeking ways to increase non-oil revenues amid dwindling crude earnings and mounting fiscal pressure. But businesses argue that arbitrary charges, such as the FOB levy, only make economic difficulties worse.
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