Nigerian Government Increases Tariffs On Imported Rice, Wheat, And Alcohol Among 189 Items

The Federal Government of Nigeria has declared a review of the Import Adjustment Tax (IAT) in line with the implementation of the Economic Community of West African States (ECOWAS) Common External Tariff (CET) for 2022-2026. As a result, tariffs on the importation of rice, wheat, alcohol, and 189 other items will increase.

According to the 2023 revised document, tariffs on rice packaging of more than 5kg or in bulk and in packing of 5kg or less have been raised to 60% from 50%. Additionally, the importation of wheat or meslin flour now carries a 70% tariff, up from 50% in the 2022-2026 ECOWAS CET.

Zainab Ahmed, the Minister of Finance, disclosed this information in a document titled “Revised Import Adjustment Tax (IAT) for Implementation of ECOWAS CET (2022-2026), 2023 Fiscal Policy Measures.” The document states that President Buhari has approved the implementation of the 2023 fiscal measures, including Supplementary Protection Measures (SPMs) for the ECOWAS CET and revised excise duty rates on alcoholic beverages, cigarettes, tobacco products, and Single Use Plastics (SUPs).

In 2022, Ahmed had issued a circular announcing President Buhari’s approval of the 2022 Fiscal Policy Measures, which involved the enforcement of the ECOWAS CET and excise duties on goods such as non-alcoholic beverages, alcoholic beverages, cigarettes, tobacco products, and telecommunication services, effective April 1, 2022.

The CET aims to harmonize ECOWAS member states and strengthen the common market by applying the same customs duties, import quotas, and preferences across the customs union.

The document further stated that a 90-day grace period, starting May 1, 2023, would be granted to all importers who had opened Form ‘M’ and entered into irrevocable trade agreements before the implementation of this circular. However, any new import transactions from May 1, 2023, will be subject to the new import duty regime.

Revised excise duty rates on alcoholic beverages and tobacco products will take effect from June 1, 2023, and will be reviewed upwards in accordance with the new regime by June 1, 2024. The excise duty on Single Use Plastics (SUP) will also come into effect on June 1, 2023.

Tags: alcohol, rice, wheat, Nigeria, tariffs, Import Adjustment Tax, IAT, Economic Community of West African States, ECOWAS, Common External Tariff, CET, импорт