The Nigerian Ministry of Finance has ordered the immediate suspension of a contentious 4% levy on all imported goods, following strong warnings from businesses that the charge would stifle economic recovery and fuel inflation.
The levy, known as the 4% Free on Board (FOB) charge, was introduced by the Nigeria Customs Service (NCS) in August 2025.
It immediately drew fierce opposition from importers and trade associations, who argued it would raise the cost of goods, hurt competitiveness, and undermine efforts to stabilize the economy.
In a directive issued late Monday, Finance Minister Wale Edun halted the policy. He stated the suspension was necessary to address the significant concerns raised by the private sector.
"Following extensive consultations with industry stakeholders, trade experts, and relevant government officials, it has become clear that the implementation of the 4% FOB charge poses significant challenges to Nigerian trade facilitation, the business environment, and economic stability," Edun said in a statement.
Economic implications
The ministry announced that the suspension will allow for a comprehensive review of the levy's framework and its broader economic implications. It pledged to collaborate with the customs service and other stakeholders to develop a more "equitable and efficient revenue structure."
The move highlights the Nigerian government's challenging position as it seeks to boost non-oil revenues.
Africa's largest economy is grappling with declining crude oil output and mounting fiscal pressures. However, businesses have consistently pushed back against what they perceive as arbitrary taxes and levies that complicate trade and increase operational costs.
The suspension of the FOB levy represents a significant victory for the business community, which had warned the policy would cripple economic growth at a time when the country is struggling to end currency volatility and spur investment.
