The Federal Executive Council (FEC) meeting on Monday approved a new import levy for sustainable financing of Nigeria’s membership subscription in the African Union (AU).
This was disclosed by the Minister of Finance, Zainab Ahmed at the end of about seven hours FEC meeting.
According to her, FEC approved a rate of 0.2 per cent as the new import levy on Cost, Insurance, and Freight (CIF) that will be charged on imports coming into Nigeria from AU countries.
She explained that there are some exceptions on goods originating outside the territory of member countries.
She said: “The Federal Executive Council meeting approved a new import levy for sustainable financing of Nigeria’s membership subscription in the African Union. It approved a rate of 0.2 per cent as a new import levy on CIF that will be charged on imports coming into Nigeria but with some exceptions.
“The exceptions includes goods originating from outside the territory of member countries that are coming into the country for consumptions.
“It also includes goods that are coming in for aid and also it includes goods that are originating from non-member countries but are imported through specific financing agreements that ask for such kinds of exemptions.
“It also exempts goods that have been ordered and are under importation process before the scheme was announced into effect.”
The purpose of this new levy, she said, is to enable the AU member countries pay on a sustainable basis their subscriptions to the Union.
She said: “The council also approved that for Nigeria knowing what will accrue from this new levy will be more than what is required as subscriptions to the AU, that the balance that will be left will be put in a special account in the Central Bank of Nigeria and will be used to finance her subscriptions to multilateral organisations such as the World Bank, African Development Bank, Islamic Development Bank and institutions like that.
“And if there is any excess left from that in the revenue pool, it will be used to financed the budget.”