Th
e Federal Government has shelved the new Free on Board (FOB) levy collected by the Nigeria Customs Service (NCS) on imported goods.
Stakeholders like 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.
MAN urged the government and the NCS to halt the implementation until December 31 to allow for a proper impact assessment and consultations with stakeholders.
Serving notice of the reversed policy, 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”.
Edun gave the notice in a memo by
R.O. Omachi, Permanent Secretary of Special Duties in the office of
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.
The memo 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 4 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 7 percent collection fees from the Federation account and 1 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.
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.
