The Federal Government has mandated the immediate suspension of the contentious 4% levy imposed on the Free-On-Board (FOB) value of imports by the Nigeria Customs Service (NCS).
This directive was communicated through a letter from the Office of the Permanent Secretary for Finance (Special Duties), signed by Mr. O. Omachi, FCA, and addressed to the Comptroller-General of Customs. Dated September 15, 2025, the letter references the authority of the Honourable Minister of Finance and Coordinating Minister of the Economy.
The government’s decision comes in response to mounting pressure from businesses and stakeholders in the import and export sectors. The correspondence notes that this action follows “extensive consultations with industry stakeholders and trade experts.”
It was concluded that the levy hindered the nation’s trade objectives. The Ministry highlighted that the charge “poses significant challenges to the Nigerian trade facilitation environment” and expressed concerns regarding its economic repercussions.
Specifically, the government cautioned about the “increased financial burden this levy imposes, with potential adverse effects on inflation,” indicating fears that this policy could be driving up the cost of goods for ordinary Nigerians.
The statement clarified that this suspension does not equate to a permanent repeal. Instead, it aims to “provide an opportunity for comprehensive stakeholder engagement” to reassess the policy and its broader implications.
The Ministry indicated its commitment to collaborating with the Customs Service to develop a more balanced approach. The letter concludes with an anticipation of “working closely with the Service to devise a sustainable revenue structure that fosters both revenue generation and economic growth and stability.”
The directive emphasizes the need for the Comptroller-General of Customs to “ensure strict compliance.” This suspension is likely to be welcomed by importers, manufacturers, and clearing agents who have vocally opposed the levy since its introduction, arguing that it has escalated operational costs.