imports.webp
The Digest:

The Federal Ministry of Finance has ordered the immediate suspension of the Nigeria Customs Service’s contentious 4% Free on Board (FOB) charge on imports. According to a directive from Minister Wale Edun, the move follows significant stakeholder pressure and aims to ease the “increased financial burden” on businesses and consumers.

Key Points:
  • The suspension was ordered via a letter from Finance Minister Wale Edun.
  • It follows extensive consultations with trade experts and business stakeholders.
  • The levy was criticised for threatening trade facilitation and economic stability.
  • Importers argued it inflated cargo costs by up to 186% for some goods.
  • The charge was estimated to add N4 trillion annually to freight costs.
  • It was reintroduced in August to replace older levies like the 1% CISS.
  • The suspension allows for a comprehensive review of the levy's framework.
This decision halts a policy that threatened to deepen inflation, demonstrating a recalibration where economic stability temporarily outweighs revenue pressure. It offers a moment of respite, a chance to rebuild on firmer, more equitable ground.


Sources: BusinessDay