AfriPulse
Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has ordered the Nigeria Customs Service (NCS) to halt the implementation of the four per cent Free on Board (FOB) levy imposed on imported goods.
The suspension was conveyed through a circular dated September 15, 2025, and signed by the Ministry’s Permanent Secretary for Special Duties, Raymond Omachi.
Edun explained that the decision was necessary to address mounting concerns from manufacturers, importers, and clearing agents who warned that the levy would fuel inflation, weaken competitiveness, and discourage investment.
“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 stated.
He added that the government would engage in wider consultations with stakeholders and carry out a thorough review of the levy framework to ensure a fairer and more sustainable revenue structure.
The four per cent FOB levy was introduced under Section 18(1)(a) of the Nigeria Customs Service Act, 2023, which stipulates that the service must receive “not less than four per cent of the free-on-board value of imports.”
It was designed to replace the one per cent Comprehensive Import Supervision Scheme (CISS) charge and the seven per cent cost of collection earlier collected by Customs.
According to Customs, the new levy was intended to provide a steady funding source for its operations, including the modernisation of clearance systems, adoption of non-intrusive inspections, and deployment of digital platforms such as the B’odogwu clearance system. Officials argued that it would reduce reliance on the Federation Account and enhance financial autonomy for the service.
However, the policy attracted strong resistance from key stakeholders since its initial introduction in February 2025. Following public backlash, it was briefly suspended but later reintroduced in August 2025. Despite this, industry groups including the Manufacturers Association of Nigeria and customs brokers continued to press for its repeal, citing its negative impact on trade and economic growth.
Edun has now directed the Comptroller-General of Customs, Bashir Adeniyi, to ensure strict compliance with the suspension while the review process is underway.
Source: TheWhistler | Read the Full Story…
