The Nigerian government has suspended the 4 percent Free on Board (FOB) import charge imposed by the Nigeria Customs Service (NCS). This decision follows concerns voiced by stakeholders and trade experts about the charge’s impact on the business environment and economic stability. In a letter dated 15 September 2025, the Permanent Secretary (Special Duties) at the Ministry of Finance explained that the suspension results from extensive consultations with industry stakeholders, trade experts, and relevant government officials. The letter noted that the 4 percent FOB charge created significant challenges for trade facilitation and economic stability in Nigeria.
The charge had been reintroduced after a brief suspension in February, prompting outrage from manufacturers and importers who argued that it would increase their financial burden, potentially raise inflation, and reduce trade competitiveness. Acknowledging these concerns, the Ministry of Finance decided to suspend the charge to allow a comprehensive review of its framework and economic implications. The suspension is expected to relieve Nigerian businesses that have been struggling with the additional cost.
The Ministry plans to work closely with the NCS and other stakeholders to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth. This move demonstrates the government’s willingness to listen to stakeholders and adjust policies to support the business community. It also provides an opportunity for a thorough review of the charge’s impact on the economy and for stakeholders to contribute to the development of a more effective revenue system.
Overall, the suspension of the FOB charge is a positive step toward creating a more favorable business environment and promoting economic stability in Nigeria. As the government develops a new revenue structure, continued engagement with stakeholders will be crucial to ensure that their concerns are addressed and that the new policies foster growth and development of the Nigerian economy.
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