FG Halts Controversial 4 Percent Import Duty Levy After Backlash
The Federal Government has suspended the four percent Free on Board (FOB) levy earlier introduced by the Nigeria Customs Service on all imported goods. The suspension came after widespread concerns from importers, trade experts, and business stakeholders, who warned that the levy would worsen inflation and disrupt trade in Nigeria.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the decision in a letter addressed to the Comptroller-General of Customs. The letter, signed by the Permanent Secretary for Special Duties in the Ministry of Finance, Raymond Omachi, confirmed that the levy was being paused following extensive consultations with industry players.
According to the finance ministry, feedback from experts and stakeholders showed that the policy would have negative effects on trade facilitation, the cost of doing business, and overall economic stability. Many stakeholders, especially importers and manufacturers, argued that the levy would drive up prices of goods, increase operational costs, and weaken Nigeria’s competitiveness in global trade.
The levy, first reintroduced in April 2025 by Customs Comptroller-General Adewale Adeniyi, had faced strong opposition from the business community. The charge was calculated on the Free on Board value of imports, meaning importers would pay four percent on the total cost of goods before shipping. Critics maintained that such a policy would burden traders, reduce investor confidence, and make Nigeria less attractive as a trade hub.
In its statement, the finance ministry clarified that the suspension does not amount to cancellation but is a temporary pause to allow further engagement with stakeholders. The government explained that the move is necessary to balance revenue generation with economic growth and ensure future policies do not create unnecessary pressure on businesses.
“The Ministry of Finance looks forward to working with the Nigeria Customs Service and stakeholders to design a fairer system that raises revenue without undermining trade or the economy,” the statement said. Analysts believe this review process will help align customs policies with ongoing economic reforms aimed at stabilising the naira, easing inflation, and improving Nigeria’s ranking in global ease of doing business.
For now, importers and traders have welcomed the suspension as a much-needed relief in an already challenging economy. Business associations have also called on the government to use this opportunity to review customs charges holistically, ensuring that future policies are fair, transparent, and supportive of growth.
Industry experts caution, however, that any new revenue measure must be carefully designed to avoid disruptions in trade and investment flows. They advise the government to strike a balance between raising funds and creating an environment that supports businesses and boosts investor confidence.
