New import tariff in nigeria 2019

In 2019, the Nigerian government introduced a new import tariff regime, which aimed to increase revenue and promote local production. Here are some key details about the new import tariff in Nigeria in 2019:

Tariff Regime: The Nigerian government introduced a new tariff regime, known as the "Tariff Regime 2019", which replaced the previous tariff regime that was in place since 2015.

Key Changes: The new tariff regime introduced several key changes, including:

  1. Increase in Tariffs: The government increased tariffs on various imported goods, including textiles, clothing, and footwear, to encourage local production and reduce imports.
  2. New Tariff Bands: The regime introduced new tariff bands, which categorized goods into different tariff rates based on their level of processing and value addition.
  3. Reduced Tariffs for Some Goods: The government reduced tariffs on some goods, such as agricultural products, to encourage imports and support the agricultural sector.
  4. Introduction of a New Tariff Rate for Luxury Goods: The regime introduced a new tariff rate of 50% for luxury goods, such as cars, jewelry, and watches, to discourage imports of such goods.

Tariff Rates: The new tariff regime introduced the following tariff rates:

  1. Basic Tariff Rate: 10% for goods that are not processed or manufactured in Nigeria.
  2. Intermediate Tariff Rate: 20% for goods that are partially processed or manufactured in Nigeria.
  3. High-Tariff Rate: 30% for goods that are fully processed or manufactured in Nigeria.
  4. Luxury Tariff Rate: 50% for luxury goods, such as cars, jewelry, and watches.

Impact: The new tariff regime was expected to have several impacts on the Nigerian economy, including:

  1. Increased Revenue: The government expected to generate additional revenue from the increased tariffs.
  2. Promotion of Local Production: The regime aimed to encourage local production and reduce imports, which could lead to job creation and economic growth.
  3. Inflation: The increased tariffs could lead to higher prices for imported goods, which could contribute to inflation.

Challenges: The new tariff regime also faced several challenges, including:

  1. Compliance Issues: Some importers and exporters faced difficulties in complying with the new tariff regime, which could lead to delays and costs.
  2. Trade Disputes: The regime could lead to trade disputes with other countries, particularly if they feel that the tariffs are unfair or discriminatory.
  3. Economic Impact: The increased tariffs could have a negative impact on the economy, particularly if they lead to higher prices and reduced consumer spending.

Overall, the new import tariff regime in Nigeria in 2019 aimed to promote local production, increase revenue, and reduce imports. However, it also faced several challenges and had potential impacts on the economy.