Nigeria Suspends Controversial 4% Import Duty Levy to Ease Trade Pressure

The Federal Government has suspended the controversial four per cent Free on Board (FOB) import duty levy recently introduced by the Nigeria Customs Service (NCS). The move, announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, comes after weeks of mounting pressure from importers, trade groups and economic analysts who warned the levy would worsen Nigeria’s already challenging business climate.

In a letter dated September 15, 2025 and addressed to the Comptroller-General of Customs, the minister ordered the immediate halt of the policy. The correspondence, signed by Permanent Secretary for Special Duties in the Ministry of Finance, Raymond Omachi, noted that extensive consultations with stakeholders revealed that the levy risked increasing the cost of goods, fueling inflation, and undermining Nigeria’s trade competitiveness.

Importers, shipping companies and manufacturers had repeatedly warned that the charge would complicate efforts to ease the cost of doing business in the country. Many feared it would erode investor confidence, reduce Nigeria’s attractiveness as a trading hub and place an additional burden on consumers already struggling with rising prices.

According to the ministry, the suspension is not a cancellation but a “necessary pause” to allow for further engagement with industry players and a comprehensive review of the levy’s framework. Officials emphasised the government’s commitment to balancing revenue generation with economic growth, stating they plan to work closely with the NCS to develop a fairer and more efficient revenue structure.

The government is expected to hold new discussions with trade groups, freight forwarders and importers to design a more equitable system that will not overburden businesses. Analysts believe the review period offers an opportunity for Customs policies to align with broader reforms aimed at stabilising the naira, reducing inflation and improving Nigeria’s ease-of-doing-business ranking. For now, importers have welcomed the decision as a much-needed relief in a tough economic climate.

source: punch