ANNOUNCEMENT 21 Nov 2009

In November 2009, the government of Nigeria announced a change in import duties and a targeted tax change.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 2 neutral
  • 0 liberalising

SOURCE



Nduwugwe, J. 2009. " Nigeria: FG Bans Importation of Bagged Cement." AllAfrica.com. October. http://allafrica.com/stories/200910210533.html

Fabi, R. 2009. "Nigeria President imposes levy on cement imports." Reuters Africa. October 20. http://af.reuters.com/article/nigeriaNews/idAFLK54813320091020

European Commission, DG Trade: Ninth Report on potentially trade restrictive measures, http://trade.ec.europa.eu/doclib/docs/2012/june/tradoc_149526.pdf


Inception date: 21 Nov 2009 | Removal date: open ended
Still in force

Tax or social insurance relief

To encourage local production of cement, the Nigerian government has approved a series of measures. In addition to the reinstatement of the policy of banning the importation of bagged cement and restrictions on the issuance of cement import licenses, the following measures were introduced:

  1. A levy has been introduced on 500naira (US$3.37) per tonne of all cement imports to assist in the development of local capacity through the estabishment of a cement training institute in Nigeria.
  2. Reinstatement of tariff incentive for imported spare parts and machinery tems to cement manufacturers.
  3. Two to three years duty-free period of importation for machinery, equipment and spare parts to cover the plant building phase and the first two years of commencement of production.
  4. Tax deductible incentives on investments in system conversion to coal firing.
  5. Removal of all forms of restrictions on the importation of gypsum.
  6. Reduction of import duty on gypsum to a maximum of 5%until local production on commercial basis is achieved.

 
Update 11/10/2012:
 
The import bans on bagged and bulk cement, in force since November 2009, have been complemented by an import licence quota for bulk cement, set in August 2010 at the level of 2.5 million metric tonnes. Furthermore, an import tariff was increased to 20% for all categories of cement goods. An additional levy of 15% will also apply on the CIF price of bulk cement, thus replacing the specific duty of N500 per tonne.

AFFECTED SECTORS

 
Inception date: 21 Nov 2009 | Removal date: open ended
Still in force

Import tariff

To encourage local production of cement, the Nigerian government has approved a series of measures. In addition to the reinstatement of the policy of banning the importation of bagged cement and restrictions on the issuance of cement import licenses, the following measures were introduced:

  1. A levy has been introduced on 500naira (US$3.37) per tonne of all cement imports to assist in the development of local capacity through the estabishment of a cement training institute in Nigeria.
  2. Reinstatement of tariff incentive for imported spare parts and machinery tems to cement manufacturers.
  3. Two to three years duty-free period of importation for machinery, equipment and spare parts to cover the plant building phase and the first two years of commencement of production.
  4. Tax deductible incentives on investments in system conversion to coal firing.
  5. Removal of all forms of restrictions on the importation of gypsum.
  6. Reduction of import duty on gypsum to a maximum of 5%until local production on commercial basis is achieved.

 
Update 11/10/2012:
 
The import bans on bagged and bulk cement, in force since November 2009, have been complemented by an import licence quota for bulk cement, set in August 2010 at the level of 2.5 million metric tonnes. Furthermore, an import tariff was increased to 20% for all categories of cement goods. An additional levy of 15% will also apply on the CIF price of bulk cement, thus replacing the specific duty of N500 per tonne.