Local manufacturers and other business people in the country stress that the recent suspension of the Nigeria Customs Service’s (NCS) four percent Free-on-Board (FOB) levy imposed on imported goods remains among the best policies of the Bola Ahmed Tinubu government as the move has already begun to impact positively on the economy
By Innocent Chukwu
Local manufacturers under the umbrella of the Manufacturers Association of Nigeria (MAN) are full of gratitude and commendation to the Federal Government for the suspension of the contentious four percent Free-on-Board (FOB) levy which the Nigeria Customs Service (NCS) imposed on goods imported into the country since August 2025.
The management of the NCS said it replaced the one percent Comprehensive Import Supervision Scheme (CISS) which it had been collecting, with the FOB levy, the replacement attracted vicious criticism from the business community which lamented that the levy would affect the cost of doing business in the country, and also effect rising cost of imported goods in the open market.
The lamentations of the Organized Private Sector (OPS) and other relevant stakeholders attracted the attention of the Federal Government which ordered the suspension of the collection of the FOB levy since Monday, September 15, 2025. Since then, there have been jubilation across the country by diverse groups of investors and business people.
For the second time, the collection of controversial four per cent FOB levy on imported goods have been suspended.
This time, it was the Federal government through the Ministry of Finance, the supervising Ministry of the NCS that ordered the suspension.
In a memo dated September 15, 2025 and signed on behalf of the Minister of Finance by R.O Omachi, the Permanent Secretary, Special Duties and addressed to the Comptroller General of Customs, Adewale Adeniyi, the government stated that extensive consultations with industry stakeholders and trade experts revealed that the four per cent FOB charge posed significant challenges to the Nigerian trade facilitation environment and economic stability.
The letter read, “Pursuant to the powers vested upon the Honourable Minister of Finance and the Coordinating Minister of the Economy under Part Ill, Section 12 of the Nigeria Customs Service Act 2023 as the Chairman of the Board of Nigeria Customs Services, I write to direct the immediate suspension of the implementation of the collection of four per cent Free on Board (FOB) recently levied by the Nigeria Customs Service on all imported goods. Following extensive consultations with industry stakeholders, trade experts, and relevant government officials, it has become clear that the implementation of the four per cent 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 this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria.
“This suspension will provide an opportunity for comprehensive stakeholder engagement and thorough review of the levy’s framework and its broader economic implications.
“The Ministry of Finance looks forward to working closely with the Service and all relevant parties to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability.
“Ensure strict compliance”.
The first time the levy which introduction jolted investors was suspended was in February 2025 when it was shortly introduced but the public outcry which greeted the introduction made the Customs management to hastily suspend its implementation.
However, the Customs re-introduced the levy on August 4, 2025.
Following the suspension of the four per cent FoB charge on imports, the MAN and the Nigeria Employers’ Consultative Association (NECA) have hailed Federal Government for the decision.
Specifically, MAN explained that the move came as a relief to its members and the broader manufacturing sector, which has been anxiously concerned about the imposition of the charge. In particular, MAN commended the Federal Government, and the Minister of Finance & Coordinating Minister for the Economy Edun.
According to the Director General of the Association, Segun Ajayi-Kadir, “The Association is confident that the Nigeria Customs Service (NCS), in keeping with its ongoing commendable reforms, will swiftly communicate the directive to all relevant commands, so that the charge will go off its portal, while we earnestly await the full restoration of the B’Odogwu platform.”
The MAN DG said that it had brought instant succour and encouragement to the manufacturing community in Nigeria and that it was a great news to the business community. He said: “The Minister just saved our country from a self-inflicted price escalation that could have unsettled the widely acknowledged stability and repurposing this administration has achieved.
“Though it was meant to boost the much needed government revenue, the charge is akin to an “own goal” in a football match.”
On his part, the Director-General, NECA, Mr. Adewale-Smatt Oyerinde, said, “We commend the Minister of Finance and Coordinating Minister of the Economy for the demonstration of government’s commitment to grow the economy through the development of the Organized Private Sector.”
Also celebrating the suspension of the levy, Nigeria’s largest carrier, Air Peace, has announced the creation of 1,000 fresh graduate jobs through its 2025/2026 Graduate Trainee Programme, in direct reciprocation of the Federal Government’s suspension of the four per cent FOB levy on imports.
Chairman of Air Peace, Dr. Allen Ifechukwu Onyema, praised President Bola Ahmed Tinubu and the Minister of Finance and Coordinating Minister of the Economy, Mr. Edun, for heeding the concerns of industry stakeholders and taking bold steps to safeguard millions of jobs nationwide.
Describing the suspension as a “lifeline” for the aviation sector, Onyema said the policy shift has prevented severe economic pressures that could have crippled airlines and triggered mass job losses.
“Just as the government has acted to protect jobs and support businesses, Air Peace is reciprocating this kind gesture by creating 1,000 fresh graduate jobs. If further supportive measures like this come from the Federal Government, I can assure you that thousands more jobs will be created in the aviation sector,” Onyema stated.
