The Federal Government has suspended the enforcement of the 4 percent Free on Board (FOB) charge recently introduced by the Nigeria Customs Service on imported goods.

The decision was announced in a statement signed by Omachi, the Permanent Secretary for Special Duties in the office of the Minister of Finance and Coordinating Minister of the Economy. The statement explained that the suspension was made pursuant to the powers vested in the Minister under Part III, Section 12 of the Nigeria Customs Service Act, 2023, as Chairman of the Board of the Nigeria Customs Service.

According to the statement, extensive consultations with industry stakeholders, trade experts, and government officials revealed that the 4 percent FOB levy would impose significant challenges on trade facilitation and economic stability. Concerns were also raised about its potential to increase financial burdens on importers, fuel inflation, weaken trade competitiveness, and negatively impact the overall business climate.

The Ministry of Finance noted that the suspension will allow for comprehensive stakeholder engagement and a detailed review of the levy’s framework and wider economic implications. It added that the government is committed to developing a more equitable and efficient revenue structure that balances revenue generation with sustainable economic growth and stability.