Customs Defying Minister’s Order, Continuing 4% Free-on-board Levy, Says LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has expressed strong concerns over the Nigeria Customs Service’s (NCS) continued enforcement of the four per cent Free-on-Board (FOB) levy, despite a formal suspension directive from the Minister of Finance.

The director-general of LCCI, Dr Chinyere Almona, stated that “the Customs has cited Section 18(1)(a) of the NCS Act 2023 as the basis for the levy. While we respect the legislative process, the Minister of Finance is the constitutionally empowered authority for fiscal policy. A duly issued ministerial suspension should take immediate effect unless overturned by the National Assembly or a competent court.”

According to her, the continued collection of this levy raises import costs, erodes competitiveness, and undermines investor confidence. LCCI therefore calls on the Nigeria Customs Service to recalibrate its systems without delay to reflect the ministerial directive and to issue a public notice confirming compliance.

“We also urge the Ministry of Finance and the National Assembly to remove legal ambiguity promptly. Nigeria’s business community needs policy clarity and institutional coordination to sustain trade, jobs, and economic growth.”

Recall that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has directed the Nigeria Customs Service to suspend the implementation of the four per cent Free on-Board levy on imported goods.

The directive was contained in a circular titled ‘Suspension of the Implementation of four per cent FOB Charge by the Nigeria Customs Service’, dated September 15, 2025, and signed by the ministry’s Permanent Secretary for Special Duties, Raymond Omachi.

The FOB levy was introduced earlier in 2025, and manufacturers, importers, and customs agents raised concerns that it would worsen the country’s inflation.

Edun said the levy, introduced by Customs, posed risks to trade facilitation, economic stability, and Nigeria’s business climate.

“Pursuant to the powers vested in the Minister of Finance under Part III, Section 12 of the Nigeria Customs Service Act, 2023, as chairman of the Board of Customs, I hereby direct the immediate suspension of the collection of the four per cent FOB recently levied on all imports,” the circular stated.

The minister explained that the suspension followed widespread concerns from manufacturers, importers, and clearing agents, who argued that the levy would worsen inflation, erode trade competitiveness, and dampen the investment climate.

He said the decision would allow for broader stakeholder consultations and a comprehensive review of the levy’s framework and economic implications.