Federal Government Suspends Controversial 4% Import Duty Levy

The Federal Government has suspended the 4% Free-On-Board (FOB) Import Duty Levy recently introduced by the Nigeria Customs Service, following a wave of criticism from importers, manufacturers, and economic experts.

The announcement was made on Monday, September 15, 2025, by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. He explained that the suspension was a response to public concerns about the levy’s negative impact on prices, investment inflows, and Nigeria’s overall economic competitiveness.

The levy — calculated as 4% of the value of goods being imported — was originally introduced as a way to boost government revenue. However, business groups argued that it would increase production costs, lead to higher prices for consumers, and put additional pressure on inflation, which currently sits above 33%.

According to Edun, the government will now conduct a comprehensive review of the levy in collaboration with key stakeholders, including manufacturers, importers, trade associations, and economists. The aim is to find a solution that balances the country’s revenue needs with economic stability and growth objectives.

Importers and industry leaders have welcomed the suspension, describing it as a timely relief for businesses already battling high exchange rates, rising shipping costs, and declining consumer spending.

Economic analysts, however, have urged the government to use the review period to create a more transparent and predictable import policy that encourages both local production and fair competition in Nigeria’s markets.