The Federal Government of Nigeria (FGN) has suspended the implementation of the four percent Free on Board (FOB) levy on all imported goods recently introduced by the Nigeria Customs Service (NCS).
This was made known in a statement issued by the Ministry of Finance, which reads as follows: “Pursuant to the powers vested upon the Honourable Minister of Finance and the Coordinating Minister of the Economy under Part III, Section 12 of the Nigeria Customs Service Act, 2023, as the Chairman of the Board of Nigeria Customs Services, I write to direct the immediate suspension of the implementation of the collection of 4% Free on Board (FOB) recently levied by the Nigeria Customs Service on all imported goods.
“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 the Nigerian trade facilitation, environment, and economic stability.”
The statement also disclosed that the suspension would enable more engagement with stakeholders, and also a comprehensive review of the economic effect of the levy would be performed to ensure its efficiency for national economic growth.
Recall that in August the NCS introduced the 4% FOB levy as a unified levy with the view of replacing several import-related charges; however, stakeholders warned on several occasions that it could worsen inflation as well as increase the price of goods, which could negatively affect Nigeria’s trade competitiveness.
