By: Business/Trade Desk
Nigeria’s finance ministry has suspended a 4% Free on Board levy on imports after weeks of criticism from businesses and trade groups.
Government’s Decision
Finance Minister Wale Edun announced the suspension late Monday, saying consultations showed the levy threatened trade facilitation and economic recovery. He added that officials would review the framework to design a fairer, more efficient revenue structure.
Industry Reaction
The Airline Operators of Nigeria welcomed the decision, saying the levy would have raised costs and worsened inflation. President Abdulmunaf Sarina described Edun as “a listening minister,” praising his commitment to protecting jobs and sustaining growth. Manufacturers and importers also applauded the move, citing relief for an already strained business environment.
Policy Lessons
Analysts said the reversal highlights the need for predictable trade policy as Nigeria seeks to attract investment and boost non-oil revenues. Arbitrary levies, they warned, risk undermining competitiveness at a time of currency volatility and sluggish growth.
The suspension is seen as a stabilising measure, but businesses stress that lasting reforms must address systemic costs and regulatory uncertainty.