The directive was issued in a circular dated September 15, 2025, and signed by the Permanent Secretary for Special Duties in the ministry. The circular cited concerns that the levy, introduced earlier in 2025, would worsen inflation, disrupt trade facilitation, and negatively impact Nigeria’s business climate.
The suspension follows objections from manufacturers, importers, and customs agents, who argued that the levy would increase costs, reduce trade competitiveness, and discourage investment. The government stated that the pause allows for further stakeholder consultations and a review of the levy’s economic implications to develop a fairer and more efficient revenue system.
The 4% FOB levy was established under the Nigeria Customs Service Act, 2023, as a replacement for previous fees, including the 1% Comprehensive Import Supervision Scheme and a 7% surcharge. It was designed to provide sustainable funding for Customs operations, including technology upgrades and modernization efforts.
Initially introduced in February 2025, the levy was suspended after public backlash but reinstated in August 2025. However, continued opposition led to this latest suspension. The Minister has instructed the Comptroller-General of Customs to ensure full compliance with the directive.