President Bola Ahmed Tinubu
PicNews
The Federal Government of Nigeria has suspended the 4% Free on Board (FOB) charge levied by the Nigeria Customs Service on all imported goods, effective immediately. This decision follows extensive consultations with industry stakeholders, trade experts, and government officials, who raised concerns about the potential negative impact on trade competitiveness, inflation, and economic stability.
The Nigeria Customs Service introduced the 4% FOB charge in August 2025 as a unified levy intended to replace multiple import-related fees, including the 7% cost of collection and the 1% processing fee under the Comprehensive Import Supervision Scheme (CISS). However, many businesses and importers argued that the additional charge would lead to higher costs, potentially affecting inflation, trade competitiveness, and the country’s overall business climate.
The Importers Association of Nigeria (IMAN) estimated that the charge would add an estimated N4 trillion annually to freight costs, a burden that would be transferred directly to final consumers. Manufacturers in Nigeria also fumed over the return of the FOB, calling for its suspension.
The Ministry of Finance emphasized that the suspension aims to create room for further engagement with all relevant stakeholders and a comprehensive review of the levy’s framework and long-term impact on the economy. The government is expected to hold further discussions with stakeholders to design a fairer system that does not overburden businesses.
According to the Ministry of Finance, the suspension will provide an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications. The Ministry of Finance assured that it would work closely with all relevant parties to create a fairer and more effective revenue structure that supports both revenue generation and economic growth and stability.
The directive was contained in a letter issued by the Permanent Secretary (Special Duties) at the Ministry of Finance, R. O. Omachi, on behalf of the Minister, Wale Edun, to the Comptroller-General of the Nigeria Customs Service. The Ministry emphasized that this step is necessary to safeguard the country’s economic stability and protect the interests of businesses operating within Nigeria.
