The Federal Government has suspended the four per cent import duty levy after strong opposition from importers, manufacturers, and trade associations who warned it would raise costs and weaken Nigeria’s competitiveness.
In a letter dated Monday, Finance Minister Wale Edun directed the Nigeria Customs Service to halt enforcement of the levy. The decision followed consultations with stakeholders, whose feedback showed the policy calculated on the Free on Board (FOB) value of imports would fuel inflation and disrupt trade.
“Feedback has made it clear that implementing this levy would place considerable strain on trade, the cost of doing business, and overall economic stability,” the ministry said.
Business operators had resisted the charge since it was reintroduced earlier this year, warning that it would push up prices, discourage investment, and undermine Nigeria’s trade hub ambitions.
The ministry clarified that the move is a suspension, not a cancellation, allowing time for further dialogue and a review of the policy’s long-term impact. Officials pledged to design a fairer revenue framework that supports government income without stifling commerce.
For now, the decision has been welcomed as relief for businesses, though analysts caution that any future measures must be carefully structured to avoid similar backlash.
