FINANCE MINISTER SUSPENDS 4% FOB LEVY ON IMPORTED GOODS
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By Aishat Momoh. O.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has ordered the Nigeria Customs Service (NCS) to suspend the implementation of the 4% Free on Board (FOB) levy on imported goods.
The directive was contained in a circular dated September 15, 2025, and signed by the Permanent Secretary for Special Duties in the ministry, Raymond Omachi.
The levy, introduced earlier this year under the Nigeria Customs Service Act, 2023 (Section 18(1)(a)), mandates that Customs receive not less than 4% of the FOB value of imports. It was intended to replace the 1% Comprehensive Import Supervision Scheme and the 7% cost of collection previously charged by Customs.
While the government argued that the levy would provide a sustainable funding mechanism for Customs’ modernisation projects, stakeholders such as manufacturers, importers, and clearing agents strongly opposed it, warning that it would fuel inflation and worsen the cost of doing business.
Edun acknowledged these concerns, noting that the levy posed risks to trade facilitation, economic stability, and Nigeria’s business climate. He stressed that the suspension would allow for a review aimed at achieving a “more equitable and efficient revenue structure that supports both government revenue and sustainable economic growth.”
The Finance Minister also instructed Comptroller-General of Customs, Bashir Adeniyi, to ensure strict compliance with the suspension order.
The 4% FOB levy was first introduced in February 2025 but was suspended following public outcry. It was later reintroduced in August 2025, with Customs integrating the charge into its cargo clearance system. However, opposition remained strong, particularly from the Manufacturers Association of Nigeria, customs brokers, and importers, who demanded its repeal or further consultations.
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