Finance Minister Halts 4% Free-on-board Customs Levy

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 (FoB) levy.

In a circular entitled “Suspension of the Implementation of 4% FOB Charge by the Nigeria Customs Service”, the minister said implementation of the levy poses significant challenges to Nigerian trade facilitation, the environment, and economic stability.

According to the circular dated 15th September, 2025, signed by the permanent secretary, special duties of the ministry, R. O. Omachi, and directed to the Comptroller-General of Customs, Bashir Adewale Adeniyi, the minister said the suspension would provide an opportunity for comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications.

He stated further that importers and businesses have raised concerns about the increased financial burden the levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria.

The circular stated that acting on the powers vested in him as the chairman of the Board of Nigeria Customs Services, Edun directed the immediate suspension of the implementation of the collection of the four per cent Free on Board (FoB) charge recently levied by the Nigeria Customs Service on all imported goods.

“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 supports both revenue generation and economic growth and stability,” it said.

The minister, however, directed the Customs CG to ensure strict compliance with the circular.