The Federal Government has ordered the immediate suspension of the controversial Free On Board levy on all imported goods.
In a directive issued late on Monday, Finance Minister Wale Edun said that the levy, introduced by the Nigeria Customs Service (NCS) last month, should be suspended to address the concerns raised by businesses.
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“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 Nigerian trade facilitation, the business environment, and economic stability,” Edun said in a statement.
The suspension was after importers and business groups had warned that the levy would increase the cost of goods, fuel inflation, and hurt Nigeria’s trade competitiveness at a time when the country was trying to end currency volatility and sluggish growth.
Companies had said the levy would also raise the cost of doing business and cripple economic recovery efforts.
The suspension will allow for a comprehensive review of the levy’s framework and its broader economic implications, the ministry said, adding that it would work with the customs service and other stakeholders to develop a more “equitable and efficient revenue structure.”