The Nigeria Customs Service (NCS) has officially announced the suspension of the controversial 4% Free on Board (FOB) charge, a move aimed at addressing concerns raised by importers, exporters, and key players in the nation’s maritime and trade sector. The suspension follows intense dialogue with industry stakeholders and reflects the government’s commitment to fostering an enabling business environment while ensuring a robust revenue generation framework.
The decision, which was disclosed via an official statement, comes amid growing concerns from businesses operating within Nigeria’s import and export sector. The FOB charge, which applies to the total value of goods before shipping, was heavily criticized by industry experts who argued that it increased the cost of doing business, discouraged trade, and placed undue financial strain on importers and exporters.
Following the suspension, the Comptroller-General of Customs, Bashir Adewale Adeniyi, initiated a series of consultative meetings with relevant stakeholders, including representatives from the Manufacturers Association of Nigeria (MAN), freight forwarders, importers, exporters, and trade unions. The goal of these engagements is to develop a fair and sustainable revenue framework that balances trade facilitation with the Customs Service’s revenue generation responsibilities.
A statement released by the Customs Public Relations Office highlighted that the ongoing consultations would explore alternative measures to boost revenue without stifling trade or increasing economic burdens on businesses. The statement also reaffirmed Customs’ commitment to President Bola Tinubu’s economic policies, which prioritize ease of doing business, trade facilitation, and job creation.
The suspension of the 4% FOB charge has sparked widespread reactions across social media platforms such as Facebook, X (formerly Twitter), Instagram, and LinkedIn, with many stakeholders welcoming the move while emphasizing the need for a long-term solution.
@TradeNigeria (X): “Great decision by Nigeria Customs! The 4% FOB charge was making things unbearable for traders. Now let’s see how they revise the revenue framework to benefit everyone.”
@LogisticsInsiderNG (LinkedIn): “The suspension of the 4% FOB charge is a relief, but this is just the beginning. Businesses need a predictable and sustainable trade policy, not temporary relief measures.”
@NigerianBusinessHub (Facebook): “While this is good news, the real question is: What comes next? Customs should prioritize a revenue strategy that enhances compliance while promoting ease of trade.”
Speaking on the issue, Dr. Muda Yusuf, an economic analyst and former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), described the decision as “a necessary move to prevent a further increase in inflation and import costs.” He added that Nigeria needs a stable customs revenue system that does not hinder economic growth.
With the suspension of the 4% FOB charge, the Nigeria Customs Service is expected to introduce new revenue strategies in consultation with industry players. Analysts predict that the government may explore alternative policies such as:
- Strengthening digital customs operations to reduce inefficiencies and increase transparency in revenue collection.
- Implementing fair tariff adjustments that do not disproportionately affect businesses.
- Enhancing trade facilitation measures to encourage compliance and boost revenue organically.
The suspension of the 4% FOB charge is a significant win for traders and industry stakeholders, but the bigger question remains—what long-term framework will Nigeria Customs adopt to ensure a business-friendly yet revenue-generating policy? The upcoming discussions with stakeholders will be crucial in shaping the future of Nigeria’s trade policies.
