ABUJA, Nigeria — The federal government has suspended the controversial 4% Free on Board (FOB) levy after strong criticism from exporters, businesses, and trade groups.....KINDLY READ THE FULL STORY HERE▶

The levy, which was introduced as part of new revenue measures, was meant to generate funds from export activities. But many business leaders argued it would raise costs, discourage trade, and hurt Nigeria’s competitiveness in international markets.

In a statement Friday, the Ministry of Finance confirmed the suspension and said the government is reviewing all recent revenue policies to reduce hardship on businesses. The decision followed weeks of complaints from exporters who warned the levy could lead to job losses and lower foreign exchange earnings.

“We have listened to stakeholders, and we are taking their concerns seriously,” the ministry said. “The levy has been suspended while we carry out further consultations and review our revenue framework.”

Exporters welcomed the suspension, calling it a relief. The Manufacturers Association of Nigeria had earlier described the levy as “unrealistic and harmful,” noting that most exporters already face high energy costs, multiple taxes, and foreign exchange shortages.

“The government made the right decision,” said one Lagos-based exporter of agricultural products. “We want policies that encourage exports, not punish them. Nigeria needs more foreign exchange, not less.”

The suspension comes as the government faces pressure to raise revenue without worsening the economic struggles of businesses and households. Nigeria is battling high inflation, weak currency, and low oil output, which have all strained public finances.

Experts say the move signals a more cautious approach to tax reforms. While the government is seeking new ways to boost non-oil revenue, economists warn that sudden levies can backfire if they drive businesses away or encourage smuggling.

“This is a balancing act,” said an Abuja-based economist. “Nigeria must expand its tax base, but it also needs to keep industries alive. Policies must be predictable, transparent, and fair.”

The finance ministry said it will engage more closely with exporters, manufacturers, and trade unions before introducing any new tax measures. Officials also promised to simplify revenue collection to avoid overlapping charges.

Analysts believe the suspension will calm business tensions in the short term. However, they note that Nigeria still faces a large funding gap, especially with growing debt service costs. The government will likely look for alternative ways to generate income, possibly through digital taxes, customs reforms, or tightening tax compliance.

For now, exporters say they are relieved that the levy will not go into effect. But many remain cautious, waiting to see what new policies the government will propose.

“Dialogue is key,” said a trade association leader. “If the government works with us, we can find solutions that grow the economy and raise revenue at the same time.”

The review of revenue measures is expected to continue in the coming months. Businesses and investors will be watching closely to see how the government balances the need for revenue with the goal of supporting economic growth.