The Federal Government has suspended the enforcement of the 4% Free on Board (FOB) levy introduced by the Nigeria Customs Service (NCS), following concerns from stakeholders over its impact on trade and the economy.
The levy, which officially took effect on August 4, 2025, was pegged at 4% of the FOB value of imported goods; that is, the cost of the goods plus transportation to the port of loading.
It was designed to replace the existing 1% Comprehensive Import Supervision Scheme (CISS) fee and phase out the 7% customs surcharge.
According to the Nigeria Customs Service Act, 2023, Section 18(1)(a), Part V, the NCS is mandated to maintain accounts where “not less than 4% of the Free-on-Board value of imports” is paid, providing a steady source of funding for Customs operations and modernization.
The levy, despite its legal foundation, drew backlash from importers and manufacturers.
These include Higher import costs, Double billing issues and Inflationary pressures.
Financial experts cautioned that introducing the levy during a period of currency volatility and high inflation could further weaken trade competitiveness and worsen Nigeria’s already fragile business climate.
The Federal Ministry of Finance explained that the levy was meant to provide Customs with sustainable funding and support the roll-out of modernization programmes such as the B’Odogwu Clearance System, aimed at improving efficiency at ports.
However, with mounting criticism, the government announced a suspension to allow for further consultations and a review of its broader economic implications.
Hence the suspension, the government is expected to engage importers, manufacturers and trade experts to refine the policy.
Meanwhile, businesses see the suspension as a temporary relief.
