The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has directed the Nigeria Customs Service to suspend the implementation of the 4% Free on Board levy on imported goods.

The directive was contained in a circular titled “Suspension of the Implementation of four per cent FOB Charge by the Nigeria Customs Service”, dated September 15, 2025, and signed by the Permanent Secretary for Special Duties in the ministry, Raymond Omachi.

PUNCH Online recalls that when the FOB levy was introduced earlier in 2025, manufacturers, importers, and customs agents raised concerns that it would worsen inflation in the country.

Edun said the levy, introduced by Customs, posed risks to trade facilitation, economic stability, and Nigeria’s business climate.

“Pursuant to the powers vested in the Honourable Minister of Finance under Part III, Section 12 of the Nigeria Customs Service Act, 2023, as Chairman of the Board of Customs, I hereby direct the immediate suspension of the collection of the four per cent FOB recently levied on all imports,” the circular stated.

The minister explained that the suspension followed widespread concerns raised by manufacturers, importers, and clearing agents, who argued that the levy would worsen inflation, erode trade competitiveness, and dampen the investment climate.

According to him, the decision would allow for broader stakeholder consultations and a comprehensive review of the levy’s framework and economic implications.

He added that the review would help establish a “more equitable and efficient revenue structure that supports both government revenue and sustainable economic growth.”

Edun also instructed the Comptroller-General of Customs, Bashir Adeniyi, to ensure strict compliance with the suspension order.

The 4% FOB levy was created under the Nigeria Customs Service Act, 2023 (Section 18(1)(a), which mandates that the Customs Service must receive “not less than 4% of the free-on-board value of imports according to international best practices”.

It was intended to replace existing fees, namely the 1% Comprehensive Import Supervision Scheme and a 7% cost of collection or surcharge that Customs used to receive.

The government and Customs argued that the new levy would be a more sustainable funding mechanism for the operations of NCS, especially for modernisation. This includes improving technological systems, electronic or digital platforms like the B’odogwu clearance system, risk management tools, non-intrusive inspections, and upgrades that require reliable funding.

It was seen as a way to reduce dependency on deductions from the Federation Account (which previously funded some Customs operations) and make Customs more financially autonomous.

The FOB levy was first introduced in February 2025, then suspended due to public outcry.

It was reintroduced around early August 2025, with Customs entering the 4% charge into its cargo clearance system.

But opposition remained strong, especially from groups like the Manufacturers Association of Nigeria, customs brokers, and importers, who demanded that the government repeal or suspend the levy or at least undertake deeper consultations.