The Nigerian Government has suspended the implementation of the 4 per cent Free on Board levy recently introduced by the Nigeria Customs Service (NCS) on all imported goods.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced the decision of the government, following widespread concerns from importers, trade experts, and other industry stakeholders about the levy’s negative economic implications.
In the letter the minister addressed to the Comptroller-General of Customs, Mr Wale Edun, who is is also the Chairman of the NCS Board,, ordered the immediate suspension of the levy.
The letter, signed by the Permanent Secretary for Special Duties in the Ministry of Finance, Mr Raymond Omachi, explained that extensive consultations had been held with stakeholders and experts, whose feedback showed that the levy would place a significant strain on trade and the economy.
“Following extensive consultations with industry stakeholders, trade experts, and relevant government officials, it has become clear that the implementation of the levy poses significant challenges to trade facilitation, the business environment, and overall economic stability,” the letter stated.
Stakeholders, particularly importers and business operators, had repeatedly warned that the levy would worsen inflation, increase the cost of goods, and weaken Nigeria’s trade competitiveness.
Many of them also argued that the charge would complicate efforts to ease the cost of doing business in the country.
According to the ministry, the suspension aims to create room for further engagement with all relevant stakeholders and a comprehensive review of the levy’s framework and long-term impact on the economy.
It will be recalled that In April 2025, the Comptroller-General of Customs, Adeniyi, announced plans to reintroduce the 4 per cent levy after consultations with stakeholders. The charge, calculated on the Free on Board value of imports, had previously been criticised by the business community for its heavy burden on importers.
The announcement immediately drew backlash from traders, shipping companies, and manufacturing associations, who maintained that the move would erode investor confidence and reduce Nigeria’s attractiveness as a trading hub.
The finance ministry clarified that the suspension was not a cancellation, but a necessary pause to reassess the levy’s potential effects. The ministry emphasised the government’s commitment to balancing revenue generation with economic growth.
“The Ministry of Finance looks forward to working closely with the Nigeria Customs Service and all relevant parties to develop a more equitable and efficient revenue structure, one that supports government income without undermining trade or economic stability,” the statement added.
GIK/APA