Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market
Nigeria began the implementation of Economic Community of West African States (ECOWAS) Common External Tariffs (CET) on January 1, 2015. ECOWAS CET seeks to liberalize trade in line with WTO guidelines by harmonizing tariff charges within ECOWAS countries and strengthening its common market. Nigeria is among ten ECOWAS member countries which have adopted the CET thus far.
The implementation was a move toward compliance with ECOWAS’ five-band regional CET. In line with the World Customs Organization five years review of the nomenclature, the Nigerian Customs Services (NCS) in April 2022 migrated to the new ECOWAS CET tariff. The ECOWAS parties are expected to adopt the reviewed tariffs based on regional considerations and national economic policy. 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. These include about 35 tariff lines whose effective duties exceed the 70% limit set by ECOWAS. Most of these items are luxury goods such as yachts, motorboats, and other vehicles for pleasure (75%). Also included is alcohol (75% to 95%) and tobacco products (95%). In addition, Nigeria places high effective duty rates on imports into strategic sectors to boost the competitiveness of the local industries. In agriculture, wheat (85%), sugar (75%), rice (70%), and tomato paste (50%) see the highest supplemental tariffs. In the mining sector, salt (70%) and cement (55%).
As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive Policy, NCS retained a duty rate of 20% for used vehicles as was transmitted by ECOWAS with a National Automotive Council (NAC) levy of 15%. New vehicles will also pay a duty of 20% with NAC levy of 20% as directed by the Ministry of Finance in April 2022.
In October 2013, the Nigerian government announced the Nigerian Automotive Industry Development Plan (NAIDP), which seeks to expand domestic vehicle manufacturing. The NAIDP had imposed a 35% levy on automobile imports, in addition to the 35% tariff already levied, for an effective total duty of 70%. The NAIDP allows companies that manufacture or assemble cars in Nigeria to import one vehicle for every one manufactured in Nigeria.