Tuesday, September 16, 2025 -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 econom
“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.
The levy was designed to streamline import charges, enhance
transparency, and boost revenue collection, with the idea that importers would
pay a single 4% fee upfront.
However, Nairametrics’ earlier reporting
revealed that importers said the 4% FOB levy was being collected in addition to
the existing 7% cost of collection, 1% processing fee, and other charges, rather than replacing them as
intended, further increasing the financial burden.
The combined effect of the 4% FOB levy, 7% cost of
collection, and 1% processing fee increased clearing costs at Nigerian ports,
with importers warning that these additional burdens were being passed on to
consumers through higher prices, especially for vehicles.
Following these developments and consultations with
stakeholders, the Federal Government suspended the 4% FOB levy to allow for a
review of its framework and assess its impact on trade competitiveness,
business operations, and the wider economy.
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