By Sandra Chukwunyere
The Federal Government has put on hold the planned introduction of a 4 percent Free On Board (FOB) charge on all imports, due to concerns that it could disrupt trade activities in Nigeria.
This decision was made after careful consideration of the potential impact on the economy and trade facilitation.
According to a memo dated September 15, 2025, signed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, the government had engaged in extensive consultations with industry stakeholders, trade experts, and relevant government agencies.
These consultations revealed that implementing the FOB charge would pose significant challenges to Nigerian businesses and the economy.
The Minister’s memo highlighted that the proposed FOB charge would have far-reaching consequences for trade facilitation, economic stability, and the business environment in Nigeria.
As a result, the government has decided to suspend the planned introduction of the charge to allow for a more thorough review of its potential impact.
The suspension of the FOB charge will provide a window for comprehensive stakeholder engagement and a detailed examination of the levy’s framework and broader economic implications.
This will enable the government to devise a more effective and equitable revenue structure that balances revenue generation with economic growth and stability.
The Ministry of Finance is committed to working closely with relevant parties to develop a more efficient revenue structure that supports both revenue generation and economic growth. This collaborative approach will ensure that the needs of all stakeholders are taken into account.
Importers and businesses had expressed concerns about the potential impact of the FOB charge on their operations. They argued that the increased financial burden would lead to higher costs, reduced competitiveness, and a more challenging business environment.
The government’s decision to suspend the FOB charge reflects its commitment to creating a favorable business environment that promotes economic growth and stability.
By engaging with stakeholders and reviewing the levy’s framework, the government aims to find a solution that balances revenue needs with the needs of businesses and the economy.
Newspoint247 reports that the suspension of the FOB charge is a positive development for Nigerian businesses, which can now breathe a sigh of relief.
The government’s willingness to listen to concerns and engage with stakeholders demonstrates its commitment to creating a more business-friendly environment.
