The Nigerian government has suspended the implementation of a 4% Free On Board (FOB) levy on imported goods, following concerns raised by businesses and industry stakeholders. Finance Minister Wale Edun announced the suspension in a directive issued on Monday, citing the need to address the challenges posed by the levy to trade facilitation, the business environment, and economic stability.
The FOB levy, introduced by the Nigeria Customs Service last month, had been widely criticized by importers and business groups, who warned that it would increase the cost of goods, fuel inflation, and hurt Nigeria’s trade competitiveness. Companies had also expressed concerns that the levy would raise the cost of doing business and hinder economic recovery efforts.
The suspension of the levy will allow for a comprehensive review of its framework and broader economic implications. The finance ministry will work with the customs service and other stakeholders to develop a more equitable and efficient revenue structure. This move is seen as a step towards alleviating the concerns of businesses and promoting economic growth.
Nigeria has been grappling with currency volatility and sluggish growth, and the government has been seeking to implement measures to stabilize the economy. The suspension of the FOB levy is a significant development in this regard, as it aims to reduce the burden on businesses and promote trade facilitation. The government’s decision to suspend the levy is also expected to have a positive impact on the country’s inflation rate, which has been a major concern in recent times.
The Nigerian government’s move to suspend the FOB levy is a response to the concerns raised by stakeholders and a demonstration of its commitment to promoting economic growth and stability. As the government works to develop a more equitable revenue structure, businesses and industry stakeholders will be watching closely to see how the situation unfolds. The suspension of the levy is a significant step towards addressing the challenges facing the Nigerian economy, and its impact will be closely monitored in the coming days.