Nigeria’s inflation slowed to 20.12% in August 2025, down from 21.88% in July, according to the National Bureau of Statistics (NBS). The drop coincided with Finance Minister Wale Edun’s suspension of the 4% Free on Board (FOB) levy on imports, following pressure from businesses and trade groups over rising costs.
The suspension, conveyed in a September 15 letter to the Nigeria Customs Service, was based on consultations showing the levy worsened inflation, trade costs, and competitiveness. Year-on-year, headline inflation fell sharply from 32.15% in August 2024, with food inflation dropping to 21.87%. NBS attributed the decline to lower food and energy prices, plus statistical rebasing. Still, food and transport costs remain key drivers of household pressure, with state-level inflation peaking in Ekiti (28.17%) and lowest in Zamfara (11.82%).
The decision to halt the levy is expected to ease pressure on importers, reduce landed costs, and slow inflationary pass-through to consumers. Stakeholder consultations will now review Customs’ revenue framework, with emphasis on aligning trade facilitation with fiscal needs. While urban and rural inflation indices show moderation, risks remain from high food prices and supply chain bottlenecks. Analysts see the policy shift as a short-term relief that could restore business confidence, but warn that sustainable impact depends on deeper reforms in trade, customs modernisation, and inflation management.
