What are the tariff rates in Nigeria?

The tariff has five bands: 0% duty on capital goods and essential drugs, 5% duty on raw materials, 10% on intermediate goods, 20% on finished goods and 35% on imports into strategic sectors. Nevertheless, effective rates tend to be higher since the Nigerian government may apply additional charges (e.g., levies, excise, and VAT) on the imports.

Which international trade issues will remain a concern for energy storage projects?

Two major areas of international trade that will remain causes of concern for energy storage projects are the application of tariffs and supply chain integrity.

Why does Nigeria use tariffs and quotas?

Nigeria employs a combination of tariffs and quotas for the dual purposes of revenue generation and protecting local industries from highly competitive imports. The country’s tariffs are determined by the ECOWAS 2015 – 2019 Common External Tariff (CET).

How many tariff lines does Nigeria have?

Nigeria adopted all tariff lines with few adjustments from the CET. Nigeria maintains several supplemental levies and duties on selected imports that significantly raise effective tariff rates. For example, Nigeria has an effective duty (tariff, levy, excise, and value added tax (VAT) where applicable) of 50% or more on over 80 tariff lines.

Does Nigeria have a reliable electricity supply?

Nigeria currently supplies electricity to the Republic of Benin, Togo, and Niger. However, the Nigerian power sector will require significant investment to achieve reliable power supply. Industry operators estimate that the country will require as much as $100 billion in investment over the next 20 years to maintain current service.

What is the effective rate of imports in Nigeria?

Nevertheless, effective rates tend to be higher since the Nigerian government may apply additional charges (e.g., levies, excise, and VAT) on the imports. However, the total effective rate of each line item is not to exceed 70%.