LCCI Urges Customs to Comply with Suspension of 4% FOB Levy

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Nigeria Customs Service (NCS) to fully comply with the Federal Government’s suspension of the controversial 4% Free on Board (FOB) import levy. The business group made the appeal following reports that despite the government’s announcement, some importers continue to face bottlenecks and demands linked to the levy at various entry points.

The FOB levy, introduced earlier this year, was widely criticised by the Organised Private Sector (OPS) as an additional burden on businesses already grappling with rising operational costs, foreign exchange volatility, and multiple taxes. Following intense pressure from key industry players, the Federal Government announced its suspension, a move welcomed by manufacturers, traders, and logistics operators as a major relief.

However, according to the LCCI, reports from its members suggest that the policy directive has not been fully implemented on the ground. The Chamber warned that failure to align with the government’s suspension would undermine investor confidence and negate the positive gains expected from the policy shift.

LCCI President, Gabriel Idahosa, said the suspension of the levy was a critical step in reducing the high cost of doing business in Nigeria. He noted that non-compliance by implementing agencies could stall economic activities and weaken the competitiveness of Nigerian businesses in regional and global trade. He stressed that the government must ensure strict adherence by Customs to its own directive in order to restore confidence among operators.

Idahosa also pointed out that the suspension aligns with broader economic reforms aimed at easing the regulatory burden on businesses, encouraging investments, and stimulating industrial growth. He added that ensuring Customs’ compliance would send a clear message that government reforms are not only policy pronouncements but are also followed through at the operational level.

The FOB levy suspension had earlier been applauded by the Manufacturers Association of Nigeria (MAN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), who argued that the levy, if left in place, would further worsen inflationary pressures by raising the cost of imported raw materials and finished goods. For import-dependent industries, the removal is expected to free up capital, improve supply chains, and lower production costs.

Business operators in the maritime sector have also expressed optimism that a proper implementation of the suspension could ease congestion at the ports, where delays linked to additional compliance checks had often slowed down cargo clearance. Freight forwarders, in particular, have said the move could reduce the turnaround time for goods and cut logistics costs, thereby benefiting consumers.

On the other hand, some analysts caution that while the suspension provides immediate relief for businesses, the government still needs to broaden its non-oil revenue base to meet rising fiscal obligations. With crude oil revenues fluctuating and debt service costs mounting, Nigeria continues to face pressure to strengthen its tax administration system. In this context, stakeholders argue that the government must balance the need for revenue generation with creating a business-friendly environment.

The Customs Service has yet to issue a comprehensive statement addressing the reports of non-compliance, but sources within the trade sector insist that immediate action is required to harmonise directives with on-the-ground practices. LCCI warned that if discrepancies persist, it could create uncertainty for importers who rely on clear policy implementation to plan their operations effectively.

In recent months, the Federal Government has intensified efforts to tackle multiple taxation and regulatory duplication that hinder business competitiveness. The Presidential Committee on Fiscal Policy and Tax Reforms has also been working on simplifying Nigeria’s tax framework to create a more transparent and growth-oriented fiscal environment.

The FOB levy issue is seen as a test case for these broader reforms. Analysts note that if the government ensures full compliance with its suspension order, it will demonstrate its seriousness about improving the ease of doing business in Nigeria and attracting both local and foreign investment.

As businesses await further clarity, LCCI has reiterated its commitment to engaging with the government and Customs to ensure that the suspension translates into actual relief for importers. The Chamber said sustained dialogue, transparency, and strict policy enforcement remain critical to ensuring Nigeria’s economic reforms deliver tangible benefits to businesses and consumers alike.

In conclusion, while the Federal Government’s suspension of the 4% FOB levy was widely celebrated, its success now depends on full compliance by the Customs Service. For the LCCI and other stakeholders, ensuring that this directive is implemented in practice will be key to reducing business costs, strengthening investor confidence, and supporting Nigeria’s broader economic reform agenda.