ABUJA, Nigeria – The Federal Government of Nigeria is expected to generate an estimated N124.26 billion annually following the introduction of a 0.5% import tax on goods as outlined in the Finance Bill 2023.
The bill, signed into law on May 28, 2023, by former President Muhammadu Buhari, imposes the new levy on goods imported into Nigeria from outside Africa.
The legislation states, “In addition to extant customs duties and other approved charges, a levy of 0.5% is imposed on all eligible goods imported into Nigeria from outside Africa.
The revenue generated will finance capital contribution, subscriptions, and other financial obligations to the African Union, African Development Bank, African Export-Import Bank, ECOWAS Bank for Investment and Development, Islamic Development Bank, United Nations, and other multilateral institutions as may be designated by regulation issued by the Minister responsible for Finance.”
Data from the National Bureau of Statistics show that Nigeria imported N24.85 trillion worth of goods from non-African countries in 2022.
A 0.5% base tax on these imports translates to N124.26 billion, a sizeable amount expected to aid in fulfilling Nigeria’s obligations to multilateral organizations.
However, the Hong Kong Trade Development Council noted that while this measure may reduce Nigeria’s public debt, consumers could bear the brunt as the cost of imported goods could rise, potentially exacerbating inflationary pressures.
Furthermore, Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, contended that the 0.5% levy could increase operational and production costs, contributing to economic inflation, and negatively affecting both businesses and citizens.
Chris Uwadoka, an Abuja-based economist, sees the new tax as a necessary fiscal measure.
He acknowledged the government’s commitment to meeting its debt obligations and sees this tax introduction as one of the strategic moves towards achieving that goal.
