Just In: Finance Ministry suspends 4% Customs levy on imports

The Federal government has suspended the implementation of the 4% Free on Board (FOB) levy recently imposed by the Nigeria Customs Service (NCS) on all imported goods.

The directive, issued by the Ministry of Finance, followed widespread concerns from stakeholders about the levy’s potential negative impact on the economy.

In a letter dated Monday September 15 and addressed to the Comptroller General of Customs, Adewale Adeniyi, the Ministry of Finance and Coordinating Minister of the Economy, acting in his capacity as Chairman of the NCS Board, ordered the immediate suspension.

The letter, signed by the Permanent Secretary, Special Duties, R. O. Omachi, stated that extensive consultations with industry stakeholders and trade experts revealed that the 4% FOB charge poses significant challenges to the Nigerian trade facilitation environment and economic stability.

The letter reads, “Pursuant to the powers vested upon the Honourable Minister of Finance and the Courdinating Minister of the Economy under Part Ill, Section 12 of the Nigeria Customs Service Act 2023 as the Chairman of the Board of Nigeri a Customs Services, | write to direct the immediate suspension of the implementation of the collection of 4% Free on Board (FOB) recently levied
by the Nigeria Customs Service on all imported goods.

“Following extensive consultations with industry stakeholders. trade experts, and relevant government officiais, it has become clear that the implementation of the 4% FOB charge poses significant challenges to the Nigerian trade facil tation, environment and economic stability.

“Many importers and businesses have raised concerns about the increased financial burden this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business Climate in Nigéna.

“This suspension will provide an opportunity for comprehensive stakeholder engagement and & thorough review of the levy’s framework and its broader economic implications .

“The Ministry of Finance looks forward to working closely with the Service and all relevant parties to devise a more equitable and efficient revenue structure that susports both revenue generation and economic growth and stability.

“Ensure strict compliance. ‘