Nigerian businesses can breathe easier as the Federal Government, led by President Bola Ahmed Tinubu, has put a stop to the 4 percent Free on Board (FOB) import charge enforced by the Nigeria Customs Service (NCS). This decision, announced in a letter dated September 15, 2025, and signed by the Permanent Secretary at the Ministry of Finance, O. Omachi, comes after protests from various stakeholders. The Minister, Wale Edun, stated that the suspension was a result of discussions with industry representatives, trade experts, and other government officials regarding the FOB charge’s implementation. The government recognized that the 4 percent FOB charge had been creating notable difficulties for trade facilitation, the business climate, and Nigeria’s economic stability. The letter specified, “I write to direct the immediate suspension of the implementation of the collection of 4 percent Free on Board (FOB) that was recently imposed by Nigeria Customs Service on all imported goods. Following thorough consultations with industry stakeholders, it has become evident that the use of the 4 percent FOB charge creates significant obstacles for trade facilitation and economic stability in Nigeria.” Numerous importers and businesses have expressed worries regarding the heightened financial strain resulting from this levy, which could negatively impact inflation, trade competitiveness, and the general business environment in Nigeria. “This pause will allow for extensive engagement with stakeholders and a detailed examination of the levy’s structure and its wider economic effects.” The Ministry of Finance anticipates collaborating closely with the Service and all pertinent stakeholders to create a fairer and more effective revenue system that fosters both income generation and economic growth and stability. According to DAILY POST, the NCS halted the FOB charges in February, but they were reinstated without any prior notice. Nigerian manufacturers have expressed their anger regarding the reintroduction of the FOB and are demanding its suspension.
