At a meeting on Monday May 21, 2019, the Federal Executive Council (FEC) approved a rate of 0.2 percent as the new import levy on Cost, Insurance and Freight (CIF), to be charged on imports from African Union (AU) member countries.
According to the Minister of Finance, Mrs. Zainab Ahmed, this new levy will not apply to:
i. goods originating from outside the territory of member countries of the AU that are imported into Nigeria for consumption;
ii. goods that are imported for aid purposes;
iii. goods that are originating from non-member countries but are imported through specific financing agreements that ask for such exemptions; and
iv. goods that have been ordered and are under the importation process before the scheme is announced into effect.
She explained that the purpose of the levy is to enable AU member countries to pay their subscriptions to the AU. Additionally, the FEC has approved that excess funds accrued from the levy may be used to finance Nigeria’s subscriptions to other international organizations, and to finance the budget.
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