The Federal Government has ordered the immediate suspension of the controversial 4% levy on the Free-On-Board (FOB) value of imports, which was being charged by the Nigeria Customs Service (NCS).
The directive was issued by the Office of the Permanent Secretary for Finance (Special Duties) in a letter signed by Mr O. Omachi, FCA, and addressed to the Comptroller-General of Customs. The letter, dated 15th September 2025, cited the authority of the Honourable Minister of Finance and Coordinating Minister of the Economy.
The government’s decision follows significant pressure from businesses and stakeholders within the import and export sector. The letter states that the move comes “following extensive consultations with industry stakeholders, and trade experts.”
It was determined that the levy was causing problems for the country’s trade goals. The Ministry found that the charge “poses significant challenges to the Nigerian trade facilitation environment” and raised concerns about its economic impact.
Specifically, the government warned of the “increased financial burden this levy imposes, with potential adverse effects on inflation.” This suggests the policy was feared to be contributing to the rising cost of goods for everyday Nigerians.
According to the statement, the suspension is not necessarily a permanent cancellation. Instead, it is designed to “provide an opportunity for comprehensive stakeholder engagement” to review the policy and its wider implications.
The Ministry expressed its intention to work with the Customs Service to find a more balanced approach. The letter concludes by looking forward “to working closely with the Service to develop a sustainable revenue structure that supports both revenue generation and economic growth and stability.”
The directive ends with a firm instruction to the Comptroller-General of Customs to “ensure strict compliance.” This immediate suspension will be welcomed by importers, manufacturers, and clearing agents, who had strongly criticised the levy since its introduction, arguing it increased the cost of doing business.
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