Nigeria’s Ministry of Finance has finally suspended the controversial 4% levy on all imported goods, following weeks of heated pushback from traders, importers, and business leaders. The levy—known as the 4% Free on Board (FOB) charge—was introduced by the Nigeria Customs Service in August 2025, but critics warned it would hike prices, hurt competitiveness, and stall the country’s fragile economic recovery.
In a directive issued late Monday, Finance Minister Wale Edun announced the immediate halt, saying consultations with industry experts and stakeholders revealed that the charge posed “significant challenges to trade facilitation, the business environment, and overall economic stability.” The ministry explained that the pause would allow a thorough review of the levy and its wider economic impact, with plans to design a more “equitable and efficient revenue structure.”
For many in the private sector, this decision is a relief. Trade associations had warned the levy could fuel inflation and scare off investors at a time when businesses are already grappling with currency volatility and rising costs. By bowing to industry concerns, the government has given the private sector a much-needed win while showing it is willing to listen.
Still, the suspension also highlights Nigeria’s larger struggle—finding ways to boost non-oil revenue without crushing businesses. As Africa’s largest economy battles falling crude production and growing fiscal pressure, policymakers are caught between raising funds and protecting growth. For now, businesses can breathe easier, but the bigger question remains: what revenue alternative will the government put in place?
