Nigeria, Sept. 16 -- The federal government on Monday suspended the implementation of a 4 per cent Free on Board (FOB) levy on imports after concerns it could fuel inflation and hurt trade competitiveness.

In a directive to the Nigeria Customs Service, signed by Raymond Omachi, permanent secretary, special duties in the office of the minister of finance and coordinating minister of the economy, the ministry said the suspension took effect immediately.

"Many importers and businesses have raised concerns about the increased financial burden this levy imposes, with potential adverse effects on inflation, trade competitiveness, and the overall business climate in Nigeria," the letter read.

The levy, introduced under the Nigeria Customs Ser...