A 0.5% import tax on commodities that was proposed in Finance Bill 2023 is expected to bring in around N124.26 billion for the Federal Government each year. The Finance Bill 2023, which former President Muhammadu Buhari signed into law on May 28, 2023, levied a 0.5% tax on products imported into Nigeria from outside of Africa.
The law stipulates that commodities imported into Nigeria from outside of Africa shall be subject to a 0.5% fee. Data from the National Bureau of Statistics show that in 2022, Nigeria imported commodities worth N24.85 trillion from outside of Africa.
The import tax was intended to reduce Nigeria’s public debt, which increased from N39.56 trillion ($88.6 billion) in December 2021 to N42.84 trillion in June 2022. “While the import levy will boost government revenues, according to some experts it may also raise the costs of imported goods to end consumers, and so add to inflationary pressures which saw the inflation rate grow from 15.60 per cent in January 2022 to 21.47 per cent by November 2022.”
In a report titled, ‘Tweaking the 2023 Finance Bill and Options for Unlocking revenues’ in 2023, the Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, argued that the 0.5 per cent levy on all imports coming from outside of Africa will be an additional burden on both businesses and the citizens. According to an Abuja-based economist, Chris Uwadoka, the new tax is a fiscal measure within the government’s capacity.