Relief For Businesses! Nigeria Customs Suspends 4% FOB Policy After Economic Concerns

The Nigeria Customs Service (NCS) has officially suspended the implementation of its 4% Free On-Board (FOB) fee on imports, following widespread criticism from stakeholders.

The decision was announced in a statement on Tuesday by the Customs National Public Relations Officer, Abdullahi Maiwada, in Abuja. The suspension aims to allow for further consultations with key stakeholders, including the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.……READ MORE 

“This suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework,” the statement read.

The now-suspended policy, initially introduced last Wednesday, was part of the Nigeria Customs Service Act (NCSA) 2023, which mandated a 4% charge on the FOB value of imported goods. This charge was calculated based on the total value of imported items, including their cost and transportation expenses up to the loading port.

The policy sparked backlash from various quarters, including former Senate President Bukola Saraki, who criticized it as an unnecessary financial burden on businesses. Saraki warned that importers would inevitably transfer the added costs to consumers, further straining an already struggling economy.

While the suspension provides temporary relief, stakeholders continue to call for broader economic reforms that ease business operations and reduce the financial strain on Nigerian citizens.