FG Suspends Enforcement of 4% FOB Charge by Customs

FG Suspends Enforcement of 4% FOB Charge by Customs

The Federal Government has suspended the enforcement of the controversial 4 percent Free on Board (FOB) charge introduced by the Nigeria Customs Service (NCS).

The suspension, announced on Tuesday, comes after weeks of pushback from key stakeholders in the maritime and manufacturing sectors who argued that the levy would increase the cost of doing business, raise import prices, and stifle trade.

The FOB charge, which was slated for immediate enforcement, required importers to pay 4 percent of the value of goods being shipped into the country. Industry operators had warned that the policy would worsen inflationary pressures and undermine the government’s efforts to attract foreign investment.

According to government sources, the suspension followed extensive consultations between the Ministry of Finance, the NCS, and private sector representatives. Officials said the decision was aimed at preventing disruptions in the supply chain while creating room for a broader review of the levy.

Stakeholders, including the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI), had earlier described the charge as “ill-timed” and “counterproductive,” urging the government to prioritize policies that promote competitiveness and ease of doing business.

The Federal Government is expected to set up a committee to review the concerns raised and make recommendations on whether the charge should be scrapped outright or modified.

This latest move underscores the administration’s cautious approach to balancing revenue generation with economic stability, especially at a time when businesses are grappling with high operating costs and exchange rate volatility.