The federal government has suspended the 4% Free on Board (FOB) levy on imported goods, citing fears it could worsen inflation and raise import costs by up to ₦4 trillion annually.

In a statement on Monday, the Ministry of Finance said the decision followed consultations with trade experts and industry stakeholders who warned the levy would burden consumers and disrupt economic stability.

The levy, introduced by the Nigerian Customs Service, was meant to replace existing import charges but faced strong opposition from importers.

Government says the suspension will allow for further review of its impact on businesses and the wider economy.