The Federal Government is set to make about N124.26bn in a year from the imposition of a 0.5 per cent import tax on goods introduced in Finance Bill 2023.
The Finance Bill 2023 which was signed into law on 28 May 2023 by former President, Muhammadu Buhari imposed a 0.5 per cent levy on goods imported into Nigeria from outside Africa.
According to the law, a 0.5 per cent levy will be imposed on goods imported into Nigeria from outside Africa. It read in parts, “In addition to extant customs duties and other approved charges, a levy of 0.5 per cent is imposed on all eligible goods imported into Nigeria from outside Africa to 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.”
Nigeria imported N24.85tn worth of goods from outside Africa in 2022 according to data from the National Bureau of Statistics. When a base tax of 0.5 per cent was applied to total non-African imports, it translated to N124.26bn. It remains to be seen if the 0.5 per cent import tax will be added to all goods.
According to the Federal Government, this revenue source will help it meet and ensure the sustainability of its obligations to multilateral organisations.
The Hong Kong Trade Development Council, in a blog post dated January 3, 2023, stated that the import levy may help Nigeria lower its public debt profile. It also noted that customers might be at the receiving end of the policy, with the cost of imported goods rising.
