The FG expects an annual collection of 124.26 billion from import taxes

The Federal Government has set a target of 124.26 billion dollars in annual revenue from taxes levied on commodities imported from non-African countries.A 0.5% import tax was placed on commodities imported into Nigeria from outside Africa, according to the bill, which was introduced under Sector 13 for Customs, Excise, Tariff, etc. (Consolidation) Act and signed into law by ex-President Buhari on May 28, 2023.According to data from the National Bureau of Statistics (NBS), around 24.85 trillion dollars in products were imported from outside Africa in 2022. When the 0.5 percent tax is applied to all imports from non-African nations, a total income of 124.26 billion is realized.The Finance law 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.” The FG has said its reason for imposing the tax on imported goods is to enable the government to raise revenue to meet its obligations to multilateral organisations like the African Export-Import Bank (Afreximbank) and ECOWAS Bank for Investment and Development (EBID).