The Federal Ministry of Finance has ordered the immediate suspension of the controversial 4 per cent Free on Board (FOB) levy on imported goods, citing its potential to undermine trade and economic stability.
The suspension order, issued in circular number F6380/T3/12 dated 15th September 2025 and signed by the Ministry’s Permanent Secretary (Special Duties), R.O. Omachi on behalf of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was addressed to the Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi.
The Ministry warns that the levy poses significant risks to trade facilitation, price stability, and Nigeria’s overall business climate.
It reads: “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. 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. 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. Ensure strict compliance, please.”
The 4 per cent FOB charge, introduced recently by the Customs Service, had faced strong backlash from private sector groups and economists concerned about its timing and economic impact. Its suspension is seen as a responsive step by the government to balance revenue generation with business confidence and macroeconomic stability.