The Federal Government of Nigeria has suspended a controversial 4% Free on Board (FOB) import duty levy introduced by the Nigeria Customs Service (NCS), following widespread criticism from importers and trade stakeholders. The decision, announced by Minister of Finance and Coordinating Minister of the Economy Wale Edun, aims to mitigate the levy’s potential to exacerbate inflation and hinder trade competitiveness.
In a letter dated September 15, 2025, addressed to the NCS Comptroller-General and signed by Permanent Secretary for Special Duties Raymond Omachi, Edun ordered the immediate suspension. The move followed extensive consultations with industry experts, importers, and government officials, who warned that the levy would strain the business environment and undermine economic stability. “The levy poses significant challenges to trade facilitation and overall economic growth,” the letter stated, emphasizing the need for a comprehensive review.
The 4% FOB levy, reintroduced in April 2025 after prior backlash, was criticized by traders, shipping firms, and manufacturers for increasing the cost of goods and eroding Nigeria’s appeal as a trading hub. Stakeholders argued it would compound inflationary pressures and complicate efforts to reduce business costs in an already challenging economic climate.
The suspension is not a cancellation but a pause to allow further engagement with trade groups, freight forwarders, and importers to develop a more balanced revenue framework. The Ministry of Finance reiterated its commitment to supporting government income without stifling trade or investment. Analysts view the decision as an opportunity to align Customs policies with broader reforms aimed at stabilizing the naira, curbing inflation, and improving Nigeria’s ease of doing business ranking.
Importers have expressed relief, welcoming the suspension as a reprieve amid economic hardships. However, experts urge the government to carefully design future revenue measures to avoid disrupting trade flows. With inflation recently easing to 20.12% in August and the naira strengthening to N1,497/$, the suspension aligns with efforts to sustain economic recovery while addressing stakeholder concerns through inclusive policy reviews.
