FG SUSPENDS 4% FOB LEVY IMPLEMENTED BY THE CUSTOMS
Pursuant to the powers vested upon the Honourable Minister of Finance and the
Coordinating Minister of the Economy under Part Il, 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.
Following extensive consultations with industry stakeholders, trade experts, and
relevant government officials, it has become clear that the implementation of the 4%
FOB charge poses significant challenges to the Nigerian trade facilitation, environment
and economic stability. Many importers and businesses have raised concerns about the
increased financial burden this levy imposes, with potential adverse effects on inflation,
trade competitiveness, and the overall business climate in Nigeria.
This 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 working closely with the Service and all relevant parties to devise a more equitable and efficient revenue structure that Supports both revenue generation and economic growth and stability.
Ensure strict compliance, please.