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BN Fam What are Your Thoughts on FG’s Increase in Import Duties of Vehicles, Alcohol, Foodstuff & Other Goods?

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On December 5 2016, the federal Government placed a ban on importation of used and new vehicles through the land borders with effect from January 1, 2017.

A statement by the Nigerian Customs Service (NCS) said that the ban was sequel to a Presidential directive restricting all vehicle imports to Nigerian seaports only.

Following this directive, the Minister of Finance, Kemi Adeosun issued a circular late last year, directing the NCS to increase import duties on luxury goods such as yachts and Sport Utility Vehicles (SUVs).

Foods such as rice, salt and sugarcane that have local alternatives are also affected by the directive.

The NCS will now receive from importers, 70% of the value of yachts and other luxury automobiles such as SUVs, boats, sports cars, and other vessels used for pleasure as against 20 per cent which they were paying before.

Other items include sugar cane and salt (from 10 per cent to 70 per cent); alcoholic spirit, beverages and tobacco (from 20 per cent to 60 per cent); and rice (from 10 per cent to 60 per cent); packaged cement (from 10 per cent to 50 per cent); cotton/fabrics materials (from 35 per cent to 45 per cent); and used cars popular known as ‘Tokunbo’ (from 10 per cent to 35 per cent).

Anti-malarial drugs and antibiotics; crude palm oil; wheat flour; tomatoes paste; and cassava products are also affected in the increase.

The circular stated that essential industrial sector accessories: bolt, industrial oil and other equipment are to enjoy a downward review to spur local industrialisation.

“This is to confirm that Mr. President has approved the 2016 fiscal policy measures made up of the Supplementary Protection Measures (SPM) for implementation together with the Economic Community of West Africa States (ECOWAS) Common External Tariff (CET) 2015 – 2019 with effect from 17th October, 2016.

Consequently, all transactions prior to the effective date of this circular shall be subjected to the tariff rates applicable before the coming into effect of this 2016 fiscal policy measures,” Adeosun said.

It added that the approved SPM was in line with the provision of the ECOWAS CET comprising the following: “An Import Adjustment Tax (IAT) list with additional taxes on 173 tariff lines of the extant ECOWAS CET; national list consisting of items with reduced import duty rates to promote and encourage development in critical sectors of the economy; an import prohibition list (Trade), applicable only to certain goods originating from non-ECOWAS member states.”

While the intention is good, many Nigerians are complaining that the move is too drastic, adding that local production is not capable of meeting the demands of the population for these products.

Great move or not?

10 Comments

  1. Mrs chidukane

    January 3, 2017 at 12:28 pm

    Your last paragraph says it all. I wonder when we’ll grow up as a country. Banning and increasing tariffs does nothing except to further stress the citizenry. Our local Nigerian songs didn’t gain ground because foreign music was banned. Create an enabling environment for businesses to thrive. Concentrate on building infrastructure . Slowly but surely,people will buy Nigerian and most of these foreign products will be phased out. The existing industries can’t serve the needs of the whole country. Nigeria does not produce textiles. Your Ankara,laces and co is produced outside so increasing the duties doesn’t solve anything.

    • kikiki

      January 3, 2017 at 2:44 pm

      Mrs Chidukane please enjoy your change you shallow brains. Didn’t you read up about him before dancing after him in 2015?

    • Mrs chidukane

      January 3, 2017 at 3:46 pm

      Kikiki, madam genius, stfu and stay in your lane idiot. Don’t come for me if you don’t want me to drag you to pieces. This is 2017, I’m done playing nice.

    • Jojo

      January 3, 2017 at 7:09 pm

      Lekwem this Moron, Mrs Chidukane. Talkin sh!t. Like you can actually drag something, how much more someone. You are CERTFIABLY LOKO!! When you were singing the praises of Bubu upandan, we didn’t hear word. Now you’re coming on here, this very platform where you’ve been spewing trash to do a retake? You can’t come for NOBADI. We dey wait you. Osiso!! We maaaaany wey dey wait you to tear you to shreds. This 2017 couldn’t have come sooner! #notime!

  2. Theresa

    January 3, 2017 at 1:17 pm

    In a country where the roads are abysmal and often impassable, SUV is a luxury item to you abi?

  3. AOB

    January 3, 2017 at 2:08 pm

    Just kuku kee me.

  4. Gbemi

    January 3, 2017 at 4:06 pm

    Some would see this and quickly grab the opportunities opened to them while some would lament till December… am sure most of made in Nigeria manufacturers smiled to the bank last Christmas…because of the made in Nigeria hampers and gifts

    • Confuzzled

      January 3, 2017 at 6:24 pm

      You don’t make any sense. Manufacturing in Nigeria has suffered due to the recession, poor infrastructure, and lack of access to forex for parts and inputs. Also, except for the baskets and labor for assembly, most of the contents of hampers are imported.

      Tariffs as a trade barrier only work when local alternatives are already in place. In the end it’s the regular folks that will be hardest hit by this. Antimalarial drugs, in a place like Nigeria should be as affordable as possible but instead they are increasing tariff.

    • Lala

      January 3, 2017 at 9:33 pm

      But why should we import salt and sugar into Nigeria? If we continue like this, how will graduates get jobs? Rice should be taken off the list until Nigeria gets to produce sufficient quantities. Every other thing can be sourced locally.

      In China, forex is rationed for individuals and small businesses, not more than 50,000 per year, for imports. Most finished goods can not be imported into China, its mainly raw materials they allow and their policy is not up for debate.

      Sometimes, I feel like I waste my time typing any explanations here. Will try to do more siddon-look on this blog this year.

  5. Na wa o!

    January 3, 2017 at 9:57 pm

    Tariff on drugs, beht why??
    So we should be subjected to chalk, and colored water mix from Aba?
    As if there isn’t enough killing the ordinary man, throw in counterfeit drugs and just kukuma put a gun to heads.

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