The Federal Government has initiated plans to introduce O.5 per cent levy on imported goods to raise funds to meet its obligations to the African Development Bank (AfDB, the World Bank and other multilateral organisations.
The new levy is contained in the 2022 Finance Bill under Sector 13 for Customs, Excise, Tariff, etc. (Consolidation) Act.
The section reads: “In addition to extant customs duties and other approved charges, a levy of 0.5 per cent is hereby imposed on all eligible goods imported into Nigeria from outside Africa to finance capital contributions, 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 government explained in the document that the amendment was essential to ensure certainty and sustainability of funding of the African Union and other key multilateral development institutions, “to bring into effect the Decision of the Outcome of the Retreat of the Assembly of the African Union (Assembly/AU/Dec.605; XXVII), and Federal Executive Council decision”.
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