FG suspends 4% FOB levy on Imports | READ WHY
The federal government of Nigeria has announced immediate suspension on the implementation of a 4 per cent Free on Board (FOB) levy on imports.
This was contained in a memo signed by Raymond Omachi, permanent secretary, special duties in the office of the minister of finance and coordinating minister of the economy, addressed to the Nigeria Customs Service.
According to the memo dated September 15, the suspension became necessary following concerns by importers and business owners on the increased financial burden this levy imposes, with potential adverse effects on inflation and trade competitiveness.
The ministry said suspending the levy would create room for “comprehensive stakeholder engagement and a thorough review of the levy’s framework and its broader economic implications.” It added that the government would work with Customs and relevant parties to design a more equitable revenue measure.
The levy, introduced under the Nigeria Customs Service Act, 2023, was aimed at boosting government revenue. But trade groups and economists warned it risked raising import costs, worsening inflation, and undermining efforts to stabilise the economy.
The memo read;
”Following the extensive consultation with industry stakeholders, officials of relevant agencies of government, it has become clear that the implementation of the 4 percent FOB charge poses significant challenges to the Nigerian trade facilitation, environment and economic stability. Many importers and businesses have raised concerns about the increased financial burden the levy imposes with potential adverse effects on inflation, trade competitiveness and overall business climate in Nigeria.
” This suspension will provide an opportunity for a comprehensive stakeholders’ engagement and a thorough review of the Levy’s framework and a broader economic implications.
“The Ministry of Finance looks forward closely with the Service and other relevant parties to device a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability.”
