Nigeria has suspended a recently introduced 4 percent Free on Board (FOB) levy on imports after businesses and trade groups raised concerns over its impact on trade and economic stability. The measure, implemented just weeks ago by the Nigeria Customs Service, had sparked widespread criticism.

Finance Minister Wale Edun said in a Monday directive that the levy had generated “significant concerns” regarding trade facilitation, the business climate, and broader economic performance. He added that consultations with industry stakeholders and trade experts highlighted the challenges of enforcing the charge.

Industry representatives had warned that the levy would raise costs for importers, drive inflation, and reduce the country’s competitiveness in global markets. The finance ministry said the suspension would allow for a thorough review of the levy and its economic implications, with plans to work closely with customs and other authorities to design a more efficient and balanced revenue system.

Nigeria, Africa’s largest economy, has been pushing to increase non-oil revenue amid declining crude output. However, new levies have often faced resistance, as companies argue they complicate trade and add costs in a period marked by currency fluctuations and slower growth.