The federal government suspended the 4% FOB import levy after widespread criticism from businesses and manufacturers over its inflationary and economic impact.
The federal government has suspended the proposed 4 percent Free on Board (FOB) import levy following widespread opposition from manufacturers and business stakeholders.
In a memo, R. O. Omachi, permanent secretary for special duties in the Ministry of Finance, said the decision followed “extensive consultations with industry stakeholders, trade experts, and relevant government officials.”
He noted that the levy posed “significant challenges to trade facilitation, environment and economic stability,” with importers warning of its inflationary impact and potential damage to competitiveness.
The Nigeria Customs Service (NCS) had announced the levy in February, replacing its seven percent collection fee and one percent CISS. Comptroller-General Adewale Adeniyi argued it would fund modernisation and contribute N1.07 trillion to the NCS’s N6.58 trillion revenue target for 2025.
But the Manufacturers Association of Nigeria (MAN) strongly opposed the measure, saying it would drive up costs for raw materials and machinery.
THIS WAS ORIGINALLY PUBLISHED ON THE CABLE