The Nigeria Customs Service (NCS) has suspended the implementation of the contentious 4% Free-on-Board (FOB) charge on imports following mounting pressure from industry stakeholders.
Announced on Tuesday, the suspension comes after widespread criticism from business groups, including the Lagos Chamber of Commerce and Industry (LCCI) and the Nigeria Employers’ Consultative Association (NECA), who argued that the levy would disrupt trade and increase operational costs.
LCCI Director-General, Chinyere Almona, condemned the lack of prior stakeholder engagement, warning that the sudden enforcement could cause delays at ports and contradict international best practices. NECA further estimated that with Nigeria’s annual imports at N71 trillion, the charge would impose an additional N2.84 trillion burden on businesses.
In response to these concerns, the NCS stated that it would conduct further consultations with stakeholders, including the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, before proceeding with the charge.
“The suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework,” said NCS spokesperson Abdulahi Maiwada.
The customs agency had justified the charge as a revenue measure under the Nigeria Customs Service Act 2023, aimed at funding modernisation initiatives, but businesses viewed it as an additional strain amid inflation and high operating costs.
The suspension is seen as a positive step towards fostering a more business-friendly environment, with further discussions expected to determine the future of the levy.
