Nigeria, Africa's largest economy, has recently adopted a new fiscal policy measure (FPM) for 2023, involving a number of import tariff adjustments and adjustments to the list of prohibited imports.

 

  • imported vehicles

Additional import adjustment duties will be imposed on motor vehicles in 2023 and 2024, of which the tax rate is 2% for vehicles of 2000cc–3999cc and 4% for vehicles of 4000cc and above.

Vehicles under 2000cc, buses, electric vehicles and locally produced vehicles are exempt. The new regulations will come into effect on June 1, 2023.

 

  • alcoholic beverages

From June 1, 2023, the additional excise tax on alcoholic beverages, tobacco, wine and spirits will increase from 20% to 100% on the basis of the previously approved tax rate.

The excise duty rate on non-alcoholic beverages remains at 10 Naira/litre.

Before the introduction of the new rate, the government applied the ad valorem rate on the import of alcoholic beverages, imposing a tax or duty on the estimated value of the goods or transactions concerned.

 

  • plastic products

A “green tax” on single-use plastics (SUPs), including a 10% excise tax on plastic containers, films and bags.

Other plastic products such as plastic plates, sheets, films, foils and tapes, polymers, styrene, and copy paper (printed and non-printed) are also subject to increased import excise duties.