FG Suspends 4% FOB Levy on Imported Goods

By Aduragbemi Omiyale

The contentious 4 per cent free on board (FOB) levy collected by the Nigeria Customs Service (NCS) on items imported into the country has been suspended by the federal government.

The suspension was announced in a circular by the Permanent Secretary on Special Duties in the Federal Ministry of Finance, R. O. Omachi, on Monday, September 15, 2025.

In the memo signed on behalf of the Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, it was explained that the decision to set aside the 4 per cent tax followed “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”

It was noted that the suspension of the controversial levy would “provide an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications.”

“The Ministry of Finance looks forward to working closely with the Service and all relevant parties to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability,” the notice added.

The federal government noted that it was glaring that “the implementation of the 4 per cent FOB charge poses significant challenges to the Nigerian trade facilitation, environment and economic stability.”

“Many importers and businesses have raised concerns about the increased financial burden this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria,” a part of the circular addressed to the Comptroller-General (CG) of Customs, Mr Adewale Adeniyi, stated.