The federal government has suspended the newly introduced 4% free-on-board (FOB) levy collected by the Nigeria Customs Service (NCS), effective immediately.
In a memo seen by TheCable, R. O. Omachi, permanent secretary for special duties in the office of the minister of finance and coordinating minister of the economy, said the decision followed “extensive consultations with industry stakeholders, trade experts, and relevant government officials.” The minister of finance also serves as chairman of the Customs board.
Omachi said the levy’s implementation “poses significant challenges to trade facilitation, the business environment and economic stability.” He added that importers and businesses had raised concerns about the additional financial burden and its potential to worsen inflation, reduce trade competitiveness and harm the overall business climate.
The suspension, he said, will allow for “comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications.” The Ministry of Finance intends to work with the NCS and other parties to design a fairer, more efficient revenue model that supports both revenue generation and economic growth. More details are expected to follow.
