The Federal Government has directed the Nigeria Customs Service (NCS) to suspend the implementation of the 4% Free-on-Board (FOB) levy on imported goods.

This decision follows extensive consultations with industry stakeholders and trade experts, revealing that the levy poses significant challenges to Nigeria’s trade facilitation environment and economic stability.

A memo dated September 15, 2025, and signed by the Permanent Secretary, Special Duties, in the Ministry of Finance, directed the Comptroller-General of Customs, Adewale Adeniyi, to ensure strict compliance with the suspension.

The memo cited concerns from importers and businesses about the increased financial burden the levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria.

The 4% FOB levy was introduced to replace the previous 1% Comprehensive Import Supervision Scheme (CISS) fee. It was intended to fund Customs’ technological modernization programs.

However, stakeholders, including the Manufacturers Association of Nigeria (MAN), expressed concerns that the new levy would significantly increase the cost of importing raw materials, machinery, and spare parts that are not available locally.

The suspension of the levy provides an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications.

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The Ministry of Finance has stated its commitment to working closely with the NCS and all relevant parties to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability.