The federal government has suspended the controversial four percent Free on Board (FOB) levy on imports following widespread protests from businesses, importers, and trade experts.
The suspension, directed by Minister of Finance Wale Edun, was communicated in a circular dated September 15.
The directive, addressed to the Comptroller-General of Customs, orders that the levy be paused immediately to allow for further review and stakeholder consultations.
Key concerns cited include fears that the levy would increase inflation, raise freight costs, and undermine Nigeria’s competitiveness in global trade.
Importers and the Importers Association of Nigeria (IMAN) argued the levy could add as much as ₦4 trillion annually in additional costs, a burden to be passed on to consumers.
The 4% FOB charge was introduced in early August to replace the Comprehensive Import Supervision Scheme (CISS) and an existing seven percent cost of collection on imports.
It was calculated on the value of goods at the point of loading, including transportation to the port of departure.
