News

April 23, 2024

Import Duty Exemption Scheme: FG prioritizes manufacturing, agric healthcare sectors 

The Federal Government of Nigeria has announced its qualification for a loan from the World Bank, totaling $2.25 billion.

Emma Ujah,  Abuja Bureau Chief 

The federal government is set to prioritise manufacturing,  agriculture and healthcare sectors in the implementation of the Import Duty Exemption Scheme.

Mr Wale Edun, the Minister of Finance and the Coordinating Minister of the Economy, who announced this in Abuja, today, also said that an Incentives Monitoring and Evaluation Platform (IMEP) would be integrated into the scheme to ensure its transparency. 

The introduction of the monitoring platform,  Mr Edun said,  would raise the bar of efficiency of the programme. 

The Director of Information and Public Relations of the of the ministry, Mr. Mohammed Gana, quoted the minister as saying, “this administration is determined to stimulate growth through incentives to the real sectors of the economy.”

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The IDEC programme strategically reduces import duty burdens for priority sectors and curb tax revenue loss.

“Integrated into the IDEC framework, the newly launched IMEP ensures that only eligible entities benefit, rigorously enforcing compliance and optimising tax expenditures to reduce waste, block leakages and enhance economic equity,” Mr. Was quoted as saying.

Key features of the IMEP include an automated claw-back mechanism for recouping waivers from defaulters, real-time e-report generation and a centralised database that enhances the efficiency of our verification processes.

The Minister said, “IMEP aims to ensure that tax incentives are rationalised to deliver maximum economic impact, aligning with the government’s commitment to reducing waste, blocking leakages, and fostering a robust and equitable economic environment.

” IMEP’s precise monitoring capabilities will significantly enhance the strategic allocation of exemptions and support the government’s objective to  ultimately reduce tax expenditures.”

To acquaint all stakeholders with the upgraded IDEC framework, the Ministry of Finance will host a webinar Thursday for industry participants, including manufacturers, importers, and representatives from MDAs and NGOs.