FG suspends 4% FOB charge introduced by Nigerian Customs Service

By Shamsudeen Abubakar

The Federal Government of Nigeria has officially suspended the enforcement of the 4% Free on Board (FOB) charge recently introduced by the Nigeria Customs Services on all imported goods.

This announcement was made by Omachi, the Permanent Secretary for Special Duties for the Ministry of Finance and Coordinating Minister of the Economy in a formal statement.

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According to the statement: “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.

“The decision follows extensive consultations with industry stakeholders, trade experts and relevant government officials. It was observed that the 4% FOB charge “poses significant challenges to the Nigerian trade facilitation environment and economic stability.”

“Many importers and businesses raised concerns over the increased financial burden this levy imposes, warning of potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria.

“The suspension will provide an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications. The Ministry of Finance looks forward to collaborating closely with the Nigerian Customs Service and all relevant parties “to devise a more equitable and efficient revenue structure that supports both revenue generation, economic growth and stability”, the statement added.