₦airaland Forum

The federal government has suspended the newly introduced free on board (FOB) levy collected by the Nigeria Customs Service (NCS) on imported goods with immediate effect.

In a memo seen by TheCable, R. O. Omachi, permanent secretary, special duties in the office of the minister of finance and coordinating minister of the economy, said the suspension follows “extensive consultations with industry stakeholders, trade experts, and relevant government officials”.

The minister of finance is also the chairman of the board of customs.

“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,” he said.

Omachi said the suspension “will provide an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications. The Ministry of Finance looks forward to 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”.

On February 4, the NCS announced plans to implement a four percent charge on the FOB value of imports.

The plan was later suspended to allow for comprehensive stakeholder engagement and consultations regarding the implementation framework.

However, on July 23, 2025, the NCS announced it will replace its seven percent collection fees from the federation account and one percent CISS with a 4 percent FOB levy at the port.



The service said that with the indigenously developed trade platform, it had no choice but to reintroduce the levy to enhance its operational efficiency and fund the technology and modernisation programme of the service.

The Manufacturers Association of Nigeria (MAN) had kicked against the reintroduction of the 4 percent FOB charge, warning that the policy would significantly raise the cost of importing raw materials, machinery, and spare parts not available locally.

The association urged the government and the NCS to halt the implementation until December 31 to allow for a proper impact assessment and consultations with stakeholders.

In June, Adewale Adeniyi, comptroller-general (CG) of customs, said the 4 percent FOB will contribute N1.07 trillion to its proposed revenue target of N6.58 trillion for 2025.

The revenue target was eventually increased by the senate to N10 trillion.

AMINDA:
Lol. First they propose an ill-thought out and economy crippling policy and then suspend it due to backlash and proceed to count it as an achievement. All while patting themselves on the back for a job well done.

AMINDA:
Lol. First they propose an ill-thought out and economy crippling policy and then suspend it due to backlash and proceed to count it as an achievement. All while patting themselves on the back for a job well done.

ogododo:
https://www.thecable.ng/breaking-fg-suspends-4-fob-charge-by-customs/

Yankee101:
Nepal is teaching lessons
People think there’s no breaking point
Push people long enough and you’ll see

givedemwotowoto:
Their goal is to manage as much as possible till the next election. People will see their true color after elections if they ever win.

Lanretoye:
Only that this suspension will not reverse the effect that it has already caused

givedemwotowoto:
Their goal is to manage as much as possible till the next election. People will see their true color after elections if they ever win.

AMINDA:
Lol. First they propose an ill-thought out and economy crippling policy and then suspend it due to backlash and proceed to count it as an achievement. All while patting themselves on the back for a job well done.

AMINDA:
Lol. First they propose an ill-thought out and economy crippling policy and then suspend it due to backlash and proceed to count it as an achievement. All while patting themselves on the back for a job well done.