The Federal Government has suspended the implementation of the controversial 4% import duty levy that was recently introduced at the nation’s ports. The decision follows widespread criticism from importers, trade unions, and business stakeholders, who argued that the levy would worsen inflation, increase the cost of goods, and place additional strain on Nigeria’s struggling economy.
The levy, which was slated for enforcement by the Nigeria Customs Service (NCS), was meant to generate additional revenue for government coffers. However, importers and freight forwarders protested that it was coming at a time when businesses were already grappling with rising exchange rates, high shipping costs, and the ripple effects of subsidy removal. Critics insisted that the extra charges would make essential commodities unaffordable for the average Nigerian.
In a statement, government officials confirmed that the suspension was taken to allow for further consultations with stakeholders in the trade and manufacturing sectors. The Ministry of Finance noted that while boosting government revenue is crucial, the welfare of citizens and the stability of businesses remain top priorities. The ministry promised to work on a more balanced approach that will not suffocate economic activity.
The suspension has been welcomed by various trade associations, who described the decision as a relief. The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) both praised the move, stressing that the levy would have eroded competitiveness for local industries and triggered further hardship.
Some stakeholders, however, warned that the suspension should not be temporary but should lead to a total review of Nigeria’s import duty framework. They argued that multiple taxes and levies at the ports have discouraged investment, reduced trade volumes, and encouraged smuggling through informal routes.
Economic experts say the government’s reversal is a signal that it is becoming more responsive to public concerns. They noted that while revenue generation is important, excessive taxation could backfire by shrinking the tax base and deepening economic challenges.
With the levy suspended, attention is now shifting to what measures the government will introduce in its place. Stakeholders are urging the authorities to prioritize policies that stimulate trade, support local manufacturing, and ease the burden on consumers, especially as Nigerians continue to face rising living costs.
