The Federal Ministry of Finance has announced the immediate suspension of the 4% Free on Board (FOB) charge recently imposed by the Nigeria Customs Service on all imported goods.
This decision follows extensive consultations with industry stakeholders, trade experts, and relevant government officials, who raised concerns about the charge’s potential impact on Nigeria’s trade facilitation, business environment, and economic stability.
The Ministry of Finance cited significant challenges posed by the 4% FOB charge, including increased financial burden on importers and businesses, which could have adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria.
The suspension aims to ensure economic stability and prevent potential disruptions to trade facilitation and revenue generation.
The suspension will enable a comprehensive review of the levy’s framework and its broader economic implications.
The Ministry of Finance will work closely with the Nigeria Customs Service and relevant parties to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability.
The decision to suspend the 4% FOB charge is seen as a significant victory for importers, manufacturers, and trade associations who had lobbied against the charge since its introduction.
The Nigeria Customs Service has assured stakeholders that it will communicate a revised implementation timeline following the conclusion of stakeholder consultations.
The Ministry of Finance looks forward to working closely with the Service and all relevant parties to devise a more equitable and efficient revenue structure that supports both revenue generation and economic growth and stability.
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