The Federal Government has announced the suspension of the controversial 4% Free-On-Board (FOB) levy on imports, just days after former Senate President Bukola Saraki raised concerns over its potential impact on businesses and consumers.
Saraki, in a post on social media, had strongly criticized the new levy, which was introduced by the Nigeria Customs Service (NCS) and was set to add a significant financial burden on businesses. He questioned the necessity of the additional N2.84 trillion that the levy would generate, pointing out that it would inevitably increase costs for consumers and exacerbate Nigeria's already strained economy. Saraki also highlighted that the levy, which applied to all imports including raw materials, would particularly harm industries already struggling with high operational costs.
In response to widespread backlash, the government has decided to suspend the implementation of the levy, citing the need for further consultations with stakeholders to ensure that policies align with the interests of Nigerians. This decision comes as a significant victory for critics, including Saraki, who had called for the policy to be urgently reconsidered.
The NCS had introduced the 4% charge as part of the Nigeria Customs Service Act (NCSA) 2023, with the goal of increasing revenue. However, the backlash has led to a re-evaluation of the policy's broader economic impact.
Details of the government's next steps will be announced in the coming days as discussions on the matter continue.