FG Suspends 4% FOB Levy On Imported Goods

FG Suspends 4% FOB Levy On Imported Goods

The Federal Government has suspended the 4% Free on Board (FOB) charge recently imposed on imported goods by the Nigeria Customs Service.

The directive, which takes effect immediately, was communicated on Monday via a letter signed by Permanent Secretary, Special Duties, R. O. Omachi, Federal Ministry of Finance.

The move follows consultations with industry stakeholders, trade experts, and government officials, who raised concerns that the levy could increase costs for importers, reduce trade competitiveness, and create inflationary pressure in the economy.

“Pursuant to the powers vested upon the Honourable Minister of Finance and the Coordinating Minister of the Economy under Part III, Section 12 of the Nigeria Customs Service Act, 2023 as the Chairman of the Board of Nigeria Customs Services, 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.

“Following 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,” the statement read in part.

The statement further noted that the suspension provides an opportunity for a comprehensive review of the levy’s framework and economic impact, ensuring that any future revenue measures are fair, efficient, and supportive of both business stability and national economic growth.

Customs officials were also instructed to strictly comply with the directive while the Ministry engages stakeholders to develop a more balanced and effective revenue collection system.