Nigeria’s Ministry of Finance has suspended a recently introduced 4% Free on Board (FOB) levy on imported goods, following widespread criticism from businesses that warned the policy would raise costs and harm economic recovery.
The Finance Minister Wale Edun, in a directive issued late yesterday, said the levy—implemented by the Nigeria Customs Service (NCS) in August—would be put on hold after consultations with trade experts, industry stakeholders, and government officials.
He noted that the charge posed “significant challenges to trade facilitation, the business climate, and overall economic stability”
Reuters reports that Importers and trade groups had strongly opposed the measure, arguing that it would fuel inflation, increase the cost of goods, and weaken Nigeria’s competitiveness in global trade.
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The suspension, according to the ministry, will allow for a broader review of the levy’s framework and its potential economic implications.
Authorities also pledged to work with NCS and other stakeholders to design a more “equitable and efficient revenue structure”.
The levy was part of efforts to diversify Nigeria’s revenue base amid declining crude oil output and mounting fiscal pressures.
However, the private sector has long resisted what it describes as arbitrary levies that complicate trade and add to operational costs.
Nigeria, Africa’s largest economy, has been struggling with sluggish growth and currency volatility, making the government’s balancing act between raising revenue and supporting business activity increasingly delicate.
Image Credit: Arise News
