Nigeria has suspended the controversial Free on Board (FOB) levy on imports after sharp criticism from trade groups and businesses who warned it would raise costs and disrupt supply chains. The suspension was confirmed by the Ministry of Finance in a statement published in BusinessDay Nigeria.
The levy, which was introduced earlier this year, was intended to boost government revenue but quickly drew opposition from importers, manufacturers, and logistics operators. Industry executives told Reuters that the policy would have inflated import costs at a time when firms are already grappling with foreign exchange shortages and high inflation.
Analysts quoted in Bloomberg noted that suspending the levy reflects the government’s need to balance revenue generation with economic stability, especially as it works to attract foreign investment and maintain consumer purchasing power. They added that the move may also help to ease inflationary pressures tied to imported goods.
Trade associations welcomed the decision but urged the government to deepen consultations with stakeholders before introducing similar measures in the future. Experts interviewed, emphasized that predictable trade policies are crucial for restoring business confidence in Africa’s largest economy.
The finance ministry said it would review the levy’s framework and explore alternative ways to boost revenue without stifling imports or worsening inflation.
