The Federal Government has suspended the enforcement of the controversial 4% Free on Board (FOB) charge by the Nigeria Customs Service (NCS).
The decision, announced on September 15, 2025, follows widespread outcry from stakeholders over the levy's potential to exacerbate inflation and undermine trade competitiveness.
O. Omachi, Permanent Secretary for Special Duties in the Ministry of Finance and Office of the Coordinating Minister of the Economy, issued the directive in a statement addressed to the Comptroller-General of Customs.
Invoking powers under Part III, Section 12 of the Nigeria Customs Service Act 2023, Omachi ordered 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."
The suspension comes after extensive consultations with industry stakeholders, trade experts, and government officials, which revealed the charge's "significant challenges to the Nigerian trade facilitation environment and economic stability."
Businesses had warned that the levy—calculated on the value of imports including transportation costs up to the port of loading—could add billions in extra expenses, likely passed on to consumers and fueling economic hardship."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 statement continued.
The Ministry of Finance pledged to collaborate with the NCS and other parties "to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability."
The 4% FOB charge was originally introduced under Section 18(1)(a) of the 2023 Act to consolidate funding for customs modernization, replacing an earlier system that included a 1% Comprehensive Import Supervision Scheme (CISS) and 7% cost of collection, which had caused inefficiencies.
It was briefly suspended in February 2025 amid similar concerns, only to be quietly reimposed later, prompting renewed protests from groups like the Manufacturers Association of Nigeria (MAN).
MAN had urged a halt until year-end for impact assessments, estimating the charge could inflate costs for raw materials, machinery, and spare parts not locally available.
The NCS had projected the levy would contribute N1.07 trillion toward its N6.58 trillion revenue target for 2025, but critics, including the Nigerian Employers Consultative Association, argued it would impose an additional N2.84 trillion burden on businesses already strained by high operating costs.
Omachi emphasized strict compliance with the suspension, signaling the government's responsiveness to economic pressures under President Bola Ahmed Tinubu's administration.
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