The Federal Government has suspended the planned four per cent Free on Board levy on imported goods, following widespread outcry from importers and trade experts who warned it would worsen inflation and hurt businesses.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced the suspension in a letter to the Comptroller-General of Customs, Adewale Adeniyi, directing that the levy be halted with immediate effect. The ministry said consultations showed the charge would place heavy strain on trade and economic stability.
Importers and business groups had strongly opposed the levy, arguing it would push up the cost of goods, erode Nigeria’s competitiveness, and further weaken investor confidence. Manufacturing and shipping associations also warned that the policy would derail efforts to ease the cost of doing business.
According to the finance ministry, the suspension is not a cancellation but a pause to allow for broader engagement and a review of the levy’s framework. Officials said the goal is to balance revenue generation with policies that support growth and trade.
Traders have welcomed the move as a relief, though experts caution that any future revenue measures must be carefully designed to avoid shocking the economy. The government is expected to hold fresh talks with stakeholders in the coming weeks to design a fairer system.