The Federal Government yesterday ordered the Nigeria Customs Service (NCS) to immediately suspend the controversial four per cent Free on Board (FOB) levy on imported goods.

The directive followed widespread criticism of the levy stakeholders, who warned the government about its potential to worsen the economic hardship in the land. The four per cent FOB levy is meant to fund Customs’ technological modernization programmes, replacing the previous 1 per cent Comprehensive Import Supervision Scheme (CISS) fee.

The Minister of Finance and Coordinating Minister of the Economy Wale Edun asked the Comptroller General of Customs Adewale Adeniyi to suspend the levy. Edun said the government made the decision “following extensive consultations with industry stakeholders, trade experts, and relevant government officials”.

He said: “It has become clear that the implementation of the 4 per cent FOB charge poses significant challenges to the Nigerian trade facilitation, environment and economic stability.

“Many importers and businesses have raised concerns about the increased financial burden this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria.

“This suspension will provide an opportunity for comprehensive stakeholder engagement and thorough review of the levy’s framework and its broader economic implications.” The first time tahe controversial Levy was suspended was in February when it was shortly introduced, but the public outcry which greeted the introduction made the Customs hastily suspend its implementation.