The Federal Government has ordered the immediate suspension of the 4% Free on Board (FOB) charge recently introduced by the Nigeria Customs Service (NCS) on imported goods.

The directive was conveyed in a letter signed by R.O. Omachi, Permanent Secretary (Special Duties), Ministry of Finance, on behalf of the Honourable Minister of Finance and Coordinating Minister of the Economy.

According to the letter, the suspension was necessitated after extensive consultations with industry stakeholders, trade experts, and relevant government officials revealed that the levy could disrupt Nigeria’s trade environment and economic stability.

The Ministry noted that businesses and importers had expressed serious concerns over the levy, stressing that it would impose additional financial burdens, fuel inflation, weaken trade competitiveness, and negatively impact the overall business climate.

“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 read.

The Ministry of Finance assured that it would work closely with the Nigeria Customs Service and other stakeholders to devise a more equitable and efficient revenue structure that balances government revenue generation with economic growth and stability.

The directive, issued under the powers vested in the Finance Minister as Chairman of the Board of the Nigeria Customs Service in line with Section 12 of the Nigeria Customs Service Act, 2023, mandates strict compliance by the Customs Service.

With this development, importers and businesses are expected to enjoy relief from the suspended levy while consultations continue on a sustainable alternative.