The Federal Government has suspended the recently introduced four percent Free on Board (FOB) levy on imports, following weeks of backlash.

The suspension, ordered by Minister of Finance Wale Edun, was contained in a circular dated September 15 and addressed to the Comptroller-General of Customs. The directive instructed an immediate halt to the levy to allow for further review and stakeholder consultations.

Critics of the policy warned it would worsen inflation, raise freight costs, and weaken Nigeria’s global trade competitiveness. The Importers Association of Nigeria (IMAN) estimated the levy could add as much as ₦4 trillion annually in extra costs—expenses that would inevitably fall on consumers.

Introduced in early August, the 4% FOB charge was meant to replace the Comprehensive Import Supervision Scheme (CISS) and an existing seven percent cost of collection on imports. It was calculated on the value of goods at the point of loading, including transportation to the port of departure.

With the suspension, the Finance Ministry says it will engage stakeholders in fresh consultations to craft a more balanced approach that protects government revenue without crippling trade and consumer welfare.