The Honourable Minister of Finance and  Coordinating Minister of the Economy has suspended with immediate effort the implementation of the collection of 4% Free on Board (FOB) recently levied by the Nigeria Customs Service on all imported goods.

The Honourable Minister  gave the directive pursuant to the powers vested upon him under Part Ill, Section 12 of the Nigeria Customs Service Act, 2023 as the Chairman of the Board of Nigeria Customs Services,

A letter from the Office of the Permanent Secretary Finance (Special Duties) of the ministry reads, “I write to direct the immediate suspension of the implementation of the collection of 4% Free on Board (FOB) recently levied by the Nigeria Customs Service on all imported goods”

The measure according to the letter addressed to the CGC Nigeria Customs, Bashir Adewale Adeniyi follows extensive consultations with Industry stakeholders: trade experts, and relevant government officials, it has become clear that the implementation of the 4% 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.

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

Meanwhile, the Ministry has restated its resolve to continue 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.