FG has suspended 4% Import Levy amid stakeholder backlash.
NewsOnline Nigeria reports that the Federal Government has suspended the implementation of the four per cent Free on Board (FOB) levy on imported goods, following mounting opposition from manufacturers, importers, and clearing agents.
The suspension was announced in a circular dated September 15, 2025, signed by the Permanent Secretary for Special Duties, Ministry of Finance, Raymond Omachi, on behalf of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
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Edun said the move was necessary to ease inflationary pressure and protect Nigeria’s competitiveness in global trade.
“In line with powers vested in the Honourable Minister of Finance under Part III, Section 12 of the Nigeria Customs Service Act, 2023, I hereby direct the immediate suspension of the collection of the four per cent FOB levy on all imports,” the circular read.
He further noted that the government would consult widely with stakeholders and conduct a comprehensive review of the levy framework to develop a fairer and more sustainable revenue model.
Recall that the four per cent FOB levy was introduced under Section 18(1)(a) of the Nigeria Customs Service Act, 2023, which mandates the service to collect “not less than four per cent of the free-on-board value of imports.”
The levy replaced the one per cent Comprehensive Import Supervision Scheme (CISS) charge and the seven per cent cost of collection previously earned by Customs. According to the service, the charge was intended to fund operational upgrades, including modernisation of clearance systems, non-intrusive inspection technologies, and digital platforms such as the B’odogwu clearance system.
Officials argued that the levy would reduce dependence on the Federation Account and strengthen Customs’ financial autonomy.
Stakeholder Resistance
Since its introduction in February 2025, the levy has faced strong resistance from the Manufacturers Association of Nigeria, customs brokers, and other trade groups. Critics warned that the charge would worsen inflation, raise production costs, and discourage investment.
The policy was first suspended after public outcry earlier this year but was reintroduced in August 2025, sparking renewed backlash.
Next Steps
Edun has directed the Comptroller-General of Customs, Bashir Adeniyi, to ensure strict compliance with the suspension order while consultations and policy reviews are ongoing.
