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Tag: Tariffs

  • Tariffs, import restrictions, others for review

    Tariffs, import restrictions, others for review

    • ‘New phase of economic reforms underway’

    The Federal Government yesterday said it would undertake a comprehensive review of the country’s fiscal and monetary policies in the next phase of its macroeconomic reforms.

    The new phase of reforms is to consolidate the globally acclaimed success of its initial reforms and quicken current economic growth.

    Addressing the Federal Executive Council (FEC) yesterday in Abuja, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who was directed by President Bola Tinubu to brief the Council, said the next phase of the President Tinubu’s economic reforms would focus on removing barriers to investment, optimizing national assets, and stimulating productivity across key sectors.

    Against the background of 4.23 per cent growth in second quarter 2025, sustained decline in inflation, stable naira and rising foreign reserves, Edun said the next phase of reforms would accelerate economic growth to seven per cent per annum by 2027.

    According to him, the forthcoming reforms will include tariff and import policy reviews, improved fiscal reporting, tighter expenditure controls, and a detailed reassessment of both federal and federation balance sheets to ensure inclusive and sustainable growth.

    He said: “The next phase of reforms will remove barriers holding back investors. We will review tariffs and import restrictions to stimulate productivity and investment. A detailed review of the federation and federal balance sheets is underway to optimize asset management for inclusive growth”.

    He added that ministers overseeing infrastructure, mining, education, health, agriculture, blue economy, digital innovation, and culture must work with state governments to package investment-ready projects capable of crowding in large-scale domestic and foreign capital.

    He pointed out that the vision of reaching $1 trillion economy by 2030 was achievable by pursuing a seven per cent annual growth and a commitment to ending poverty as a moral imperative.

    Providing an update on key economic indicators, Edun reported that Nigeria’s Gross Domestic Product (GDP) grew by 4.23 per cent in second quarter 2025, the highest in a decade outside the COVID rebound, with 13 sectors recording growth above 7.0 per cent.

    Read Also: Import licence: Court dismisses N100b suit

    He pointed out that the industrial sector nearly doubled its growth from 3.72 per cent to 7.45 per cent, reflecting strong investor confidence.

    He said: “The reforms that have been taken under the Renewed Hope Agenda, so bold and sometimes unpopular, are rooted in a clear objective to build a competitive economy that attracts, creates jobs and lifts millions out of poverty.

    “In second quarter 2025, Nigeria’s GDP grew by 4.23 per cent, the highest in a decade, outside the COVID rebound. Thirteen sectors recorded growth above 7.0 per cent, up from nine sectors in the previous quarter.”

    “The industrial sector nearly doubled its growth from 3.72 per cent to 7.45 per cent, reflecting rising productivity and investor confidence. Inflation eased to 18.02 per cent in September 2025. As we know, foreign exchange reserves topped $43 billion, and our trade surplus reached N7.4 trillion.

    “Clear examples of macroeconomic stability, as the consumer spending basket published earlier this year shows, our citizens now spend maybe about half of the income on basic needs, food, shelter and clothing, as compared with almost 90 per cent previously.

    “This signals a country moving from subsistence towards productivity and indeed affluence”.

    Edun noted that the recent $2.35 billion Eurobond issuance, which was oversubscribed by over $13 billion, demonstrated international confidence in Nigeria’s economic direction and in President Tinubu’s leadership, “despite political headwinds.”

    “The market shrugged off those political considerations and focused on the economic fundamentals of Nigeria,” Edun said.

    He noted that the removal of Nigeria from the Financial Action Task Force (FATF) grey list and the IMF’s revised growth forecast were further proof that “global leaders commend our reforms and progress”.

    He emphasised the importance of prudent fiscal management, saying “every naira must be optimised to sustain momentum amid global liquidity constraints, where there is less coming from multilateral institutions, we have to depend on our own resources.”

  • Trump threatens India with new tariffs ‘in next 24 hours’

    Trump threatens India with new tariffs ‘in next 24 hours’

    U.S. President Donald Trump has threatened to impose higher tariffs on India very soon because the country does business with Russia.

    “We settled on 25 per cent, but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil,” Trump told U.S. broadcaster CNBC on Tuesday.

    “They’re fueling the war machine. And if they’re going to do that, then I’m not going to be happy,” Trump explained.

    Read Also: Trump threatens to raise tariffs on goods from India over Russian oil purchases

    Trump had previously threatened higher tariffs in the context of Russia’s war of aggression against Ukraine, but said nothing about a specific amount.

    He made his announcement before the end of a deadline he had set for Russia to reach a ceasefire between Moscow and Kiev.

    If the deadline passes without a result, according to Trump, it began last Tuesday and runs for 10 days.

    The U.S. president intends to impose sanctions against Russia’s trading partners. (dpa/NAN)

  • Tariffs, tectonic shifts and Nigeria’s window of opportunity 

    Tariffs, tectonic shifts and Nigeria’s window of opportunity 

    Prof. Benard I. Odoh

    On April 2, 2025, the global economic chessboard shifted dramatically. In a televised White House announcement, U.S. President Donald J. Trump unveiled a sweeping tariff regime: a universal 10% tax on all imports into the United States, accompanied by punitive tariffs reaching up to 145% on key Chinese goods such as electric vehicles, steel, semiconductors, aluminum, and solar panels. The move signaled more than just America’s trade policy pivot — it marked a full-fledged reset of global industrial power play.

    The impact was immediate. Foreign direct investment (FDI) into China’s manufacturing sector plunged by 27% in Q1 2025, according to Bloomberg Economics. Simultaneously, Vietnam recorded a 12% jump in new manufacturing investments, attracting $7.2 billion in the same period. Mexico raked in $18 billion in annual nearshoring investments, as U.S. firms looked to avoid Asian tariffs and shorten supply lines. Even Morocco and Ethiopia—long considered peripheral—began registering upticks in industrial investment, particularly in textiles and auto components. The global factory is on the move, and the world is realigning fast.

    Across the Atlantic, Africa is no longer just watching—it is beginning to reposition. Captain Ibrahim Traoré of Burkina Faso made waves by declaring his country a “Tax-Free Nation,” an audacious signal to global investors that West Africa is open for production—not just extraction. While his announcement stirred debates in Western diplomatic circles, it captured the attention of emerging-market investors. For once, an African leader wasn’t begging for aid—he was offering terms. The message was unmistakable: Africa can negotiate on its own terms, and those terms now include value creation.

    And yet, amid this continental awakening, Nigeria—the giant of Africa—remains unsettlingly silent. Despite being blessed with 44 commercially viable solid minerals, over 84 million hectares of arable land, and the continent’s largest population, Nigeria continues to export cocoa and cashew, crude oil and lithium, only to import chocolate, petrol, starch, and batteries. Our ports are busy, yes—but mostly importing what we could have made. Our industrial zones are littered with potential. Our policies? Still stuck in an extraction-export loop that’s no longer tenable in today’s economic reality.

    As Peter Drucker once said, “The best way to predict the future is to create it.” This is where Nigeria’s proposed 30% Minimum Value-Addition Policy becomes a defining lever of change. The policy mandates that no raw material shall leave Nigeria unless it has undergone at least 30% processing locally. It’s a game-changing shift from raw extraction to productive transformation. And it sends a strong global signal: Nigeria is no longer willing to be a pipeline of raw exports; it wants to be a hub of finished goods, job creation, and wealth retention.

    Read Also: Brace for cost-reflective tariffs, minister tells Nigerians

    This isn’t about protectionism — it’s about strategic leverage. If properly enforced, the policy will compel both local and international investors to build processing plants and value-adding infrastructure across Nigeria. The economic impact is measurable and massive. Conservative estimates project over ₦25 trillion ($25 billion) in industrial investments within five years, the creation of over 3 million jobs, and an increase in value-added exports from 12% today to 45% by 2030. It will also deepen intra-African trade under AfCFTA by positioning Nigeria not as a supplier of raw inputs but as a producer of intermediate and final products for the continent.

    Meanwhile, the rest of the world is not waiting. Ethiopia has already launched industrial parks focused on textiles and agro-processing. Rwanda now exports refined tantalum instead of raw coltan. Morocco dominates phosphate and fertilizer exports with over $5 billion in annual value. These countries are no longer passive participants in global trade. They are shaping it. And they are being rewarded for it.

    As President Paul Kagame famously stated, “Africa’s story has been written by others; we need to own it and tell it ourselves.” Nigeria has everything it takes to lead this new narrative: a domestic market of over 200 million people, abundant raw materials, a tech-savvy youth population, and access to regional and global markets. What has been missing is the policy courage and institutional coordination to turn potential into productivity. The 30% Value-Addition Bill is a clear step in that direction. But it must move beyond legislative chambers and find life in the real economy—with budgetary support, executive buy-in, inter-agency alignment, and private-sector mobilization.

    As WTO Director-General Ngozi Okonjo-Iweala once reminded the world, “Trade can be a force for good, but only when it is inclusive, fair, and value-enhancing.” This global trade reset will not wait for us to get ready. The U.S.–China tariff decoupling has already triggered a worldwide reallocation of manufacturing. The countries that act now will reap the long-term dividends. Those that hesitate will be locked into economic irrelevance.

    Nigeria has a chance—not just to catch up—but to catch the lead. This is not a moment for hesitation. It is a moment for execution.

    Let us not miss it.

    .* Odoh is chairman, LOC, Africa Raw Materials Summit, 2025 and former SSG, Ebonyi State.

  • FULL LIST: African countries affected by Trump’s new tariffs

    FULL LIST: African countries affected by Trump’s new tariffs

    U.S. President Donald Trump on Wednesday introduced his long-anticipated “red hot” tariffs aimed at boosting American manufacturing and penalising nations for what he describes as years of unfair trade practices.

    Trump announced a 10% baseline tariff on all imports into the U.S., with higher rates imposed on countries with trade surpluses against America.

    Some of the highest rates will be levied on smaller countries, with goods from Lesotho facing 50%.

    The European Union is facing 20% tariffs, while China is looking at 34%.

    Here is the list of the African countries on Trump’s preliminary list:

    Lesotho – 50%

    Madagascar – 47%

    Mauritius – 40%

    Botswana – 37%

    South Africa 30%

    Nigeria – 14%

    Kenya – 10%

    Ghana – 10%

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    Ethiopia – 10%

    Tanzania – 10%

    Uganda – 10%

    Senegal – 10%

    Liberia – 10%

    Although Nigeria and other African nations are not on Trump’s supplementary list, they remain subject to the 10% baseline tariff affecting all imports into the United States.

  • Tariff increase must be fair, just, says Reps committee chairman on power

    Tariff increase must be fair, just, says Reps committee chairman on power

    ….higher tariff on Band A reduced electricity subsidy from N3tr to N1tr, says minister

    The chairman of the House of Representatives Committee on Power, Hon. Victor Nwokolo, on Tuesday, June 11, said electricity tariff increase must be fair and just.

    He said this at a public hearing by the Joint Committees on Power, Commerce, National Planning and Economic Development and Delegated Legislation on electricity tariff increase.

    This was as the minister of power, Adebayo Adelabu, said the introduction of band A with a higher tariff reduced electricity subsidy from N3 trillion to N1 trillion.

    According to the minister, without the increase in electricity tariffs, the expected subsidy would be close to N3 trillion.

    He stated that the federal government could not afford to pay N3 trillion subsidy.

    He said Nigeria still pays lower tariffs compared to its neighbours.

    The Committee Chairman said though the legislature has granted Nigerian Electricity Regulatory Commission (NERC) the powers to approve tariff, this power can only be validly exercised when the regulator has observed regulatory due process. 

    “The power of a regulator to approve tariff increase has to be justified by evidence and logic that show that the reviewed tariff is fair and just and apportioned to different customer class according to the real costs of serving them. 

    “The Electricity Act authorises NERC to allow an operator to recover the costs of electricity supply. But this recovery will be only after the operator has established that it has incurred the costs in a prudent manner. The regulator cannot impose a burden on customers to bear imprudent and unnecessary costs.

    “We want everyone here today to assist us with the truth. We want to know the challenges the sector is facing and how we can support. We want to see how responsible each of you has discharged your responsibility under the law and the terms and conditions of your licenses. 

    “We want to know how customers have been served and protected. We want to know whether the safeguards that the legislature wrote into the law was complied with in the recent approval of tariff review. We want to be able to tell the entire house that the regulator and the minister followed the law and global regulatory practice in approving the tariff review,” Nwokolo said.

    Read Also: Reps invite transport minister over derailment of Abuja-Kaduna train services

    He said the committee was set up pursuant to a resolution of the House approving an investigation into the circumstances and rationale for the recent tariff review announced by the Nigerian Electricity Regulatory Commission (NERC). 

    “Recall that NERC as regulator of the Nigerian Electricity Supply Industry (NESI) approved request by the eleven distribution companies to increase tariff for the so-called Band A customers from N64 to N225 per kilowatts hour. NERC announced by this new tariff, customers in Band A would be receiving at least 20 hours of electricity supply everyday. 

    “Since this announcement, we have received a lot of complaints about misgivings on both the process and the substance of the regulatory action of NERC. 

    “Many of the complaints relates to the lack of consultation by the regulator as required by law before approving the increase. Others relate to lack of 20 hours of electricity supply as promised by the regulator which is not been delivered.

    “We have invited both the policymakers, represented by the Honourable Minister of Power, the regulator, NERC, the licensees who are the operators of the Nigerian electricity industry, the organized labour centers, organized private sector and consumer groups to share their views about the process that NERC employed to approve the new tariff.

    “As representatives of the people we have a commitment to take up these complaints and ensure that the Minister, the regulator and the operators provided the need information for us to report to the plenary on how legal, rational and reasonable all parties have exercised their mandates,” he said.

    The Power Minister added that instead of piling up debt for the government, the Ministry came up with the model for people to pay higher on band A. 

    Adelabu said, “We are still about the cheapest even in the sub-sahara in spite the tariff. Our neighboring countries pay higher. So the price isn’t comparable.

    “The band A is cheaper compared to other sources of generating power. It is almost 50 per cent cheaper to connect to bond A of the national grid than run on fuel and diesel.

    “So when we complain about the higher tariff, it is cheaper for any business to pay for grid connection than to individually generate power.”

    He said that the administration of President Bola Tinubu meant well for the citizenry, adding that the president would not worsen the situation in the country.

    He said: “We are out to make things better for Nigeria and to create industrial development through our local manufacturing and energy is needed to do this.”

    The minister said that the increase in tarif was not targeted at making life difficult for Nigerian but to make life affordable for the people.

    The Deputy Speaker of the House of Representatives, Benjamin Kalu, said the decision by the Nigeria Electricity Regulatory Commission to increase electricity tariffs had sparked widespread discontent.

    He said that the rationale provided for this tariff hike, as outlined by NERC, is to address the industry’s mounting debt

    and ensure the continued functioning of the power sector.

    He said that it was evident that the move had not been well-received by the citizenry, adding that the fears expressed by many were valid.

    He said such a sharp increase in electricity tariffs would only exacerbate the economic hardships already faced by the people. 

    “There are genuine concerns that higher utility bills resulting from this tariff hike could have a ripple effect on operational costs for businesses, potentially leading to increased prices for goods and services,” he said.

    Kalu however emphasised the lawmakers’ commitment to work closely with the executive to transform the Nigerian power sector into a model of efficiency and sustainability.

    “We are dedicated to providing legislative support to the efforts of Tinubu’s administration in reforming the power sector by addressing all legal and legislative impediments accordingly,” he said. 

  • Of international expatriate ‘tariffs’ and the Nigerian situation

    Of international expatriate ‘tariffs’ and the Nigerian situation

    • By Johnson Momodu

    Ongoing plan by the Federal Government of Nigeria, through the Ministry of Interior and the Nigerian Immigration Service (NIS), to roll out a policy to drag expatriates into its revenue-generation net has dominated the media space in the last two weeks.  According to sundry media reports, the plan would dovetail into a policy choice that is well-rooted in the economic imperative of widening the nation’s revenue base and, consequentially, bolstering the economy in terms of production and consumption of goods and services as well as the supply of money.

    The plan, understandably, requires some validations against the important question around its novelty. While the plan to capture expatriates in the proposed revenue net (not taxes) may be novel in Nigeria, the decision by the President Bola Tinubu administration to consummate the policy of ensuring that the working expatriate community in Nigeria becomes a veritable source of new revenue has obligatorily underscored the administration’s need to explore all reasonable avenues to generate income.

    In fact, the essential international contexts for comparative analyses between how and why the policy is practised in other countries and why it is not in Nigeria, validates the urgency that is needed to effectuate the policy in its entire ramifications. A good understanding of how other countries have placed special demands on their international expatriates leaves one with the impression that Nigeria has all along missed out in this critical area that has the potential to generate mega foreign exchange earnings for the country.  If the trend must be reversed, the federal government must take the bull by the horns and confront the existential challenges that may want to conspire to frustrate the coming on stream of the revenue source. 

    Indeed, it is remarkable to note that as part of the nationalization regulations to encourage hiring citizens over expatriates in G-20 countries, including Mauritania and many other countries, private sector entities are being charged monthly for each expatriate employee that exceeds the number of employees at the entities. This is in apple-pie order and in alignment with international best practices, and Nigerian can very well adopt it.

    This practice is a cosmopolitan reality in Germany, China, France, Czech Republic, Ireland, and in over 17 other countries, which are placing charges on the offshore earnings of expatriates.  The Tinubu administration will do well to replicate the same in Nigeria.

    In those countries, which are by all standards developed, they have not put an end to generating revenue.  A plethora of revenue sources is being constantly devised to meet the challenges of public finance, rising complexity in the ever-expanding infrastructure gap, especially in Nigeria, and funding of governments globally.  Growth and development in all sectors of their respective national economies become the normative order in the consideration and effectuation of policies, programmes, and projects that conduce towards the public good.

    Read Also: FIRS sets deadline for International Shipping Companies to ensure tax compliance

    The interplay between the wellbeing and security of the people underscores the primary purpose of government anywhere in the world. Significantly, these two essential ingredients of government and community cannot, suo motu, activate themselves, nor can sheer political will without any corresponding or concomitant actions do so.  The political will must crystallize in the nature and form of deliberate and aggressive funding, which is impossible if there is no cash backing.  Governments cannot spend the money they do not have. It is the responsibility of governments to run and coordinate their national economies, manage the relationship and tension between production and consumption as well as other financial or budgetary matters.

    It is therefore understandable when governments globally, including the federal government of Nigeria and the subnational governments embark on government-to- government, government-to-business and government-to-people interactions that result in generation of revenues, including Internally Generated Revenue (IGR) through taxes, royalties, fees, fines and sundry charges on both small and large scales.  It is in this context that the plan by the Tinubu administration to extend its revenue source to expatriates working in Nigeria finds justification.

    Indeed, the initiative to place extra demand on working expatriates in Nigeria is not dissimilar to what operates in China, for example, where the income of expatriates from employment is subject to Individual Income Tax (IIT). In that clime, taxable income from employment generally includes wages and salaries, bonuses, commissions, allowances and subsidies, taxes paid by the employer, stock options and any other income related to the individual’s position or employment.

    In the Czech Republic (CR), all employment-related incomes of expatriates (wages, salaries, overtime pay, bonuses, gratuities, perquisites, benefits, benefits from employees‘ stock options, etc.) are taxed. Mandatory health insurance and social security contributions paid are also regarded as employment income subject to tax (they enter a tax base and create a super gross salary). If a Czech employer has an expatriate working for them without a Czech employment contract, such expatriates are typically employed by a foreign company. In such cases, the deemed employer must act as a payroll agent and transfer the appropriate income tax advances to the tax office. This is basically about taxation. But what the Nigerian government is planning is not additional taxation on expatriates’ income.  It is a charge that derives from implementation of the terms and conditions of the expatriate quota given to companies that engage the services of expatriates.  It possibly operates at a minimum of two levels from my understanding of what is in the works, although greater details, according to media reports, would be announced at the launch of the policy soonest.

    The first level may entail a fixed charge on each expatriate working in Nigeria; then the second level may be charges imposed on companies for infractions or failure to absorb Nigerian professionals into jobs that are allotted to them. If any company that engages the services of expatriates gives jobs meant for Nigerians to expatriates, it should be ready to pay the prescribed penalty.  There may be other ancillary charges derivable from the overarching implementation of the new revenue measures, which Nigeria has not taken advantage of since 1960. It is not too late to begin to derive the requisite benefits in this area, which is why the beat is on.

    As the saying goes, it is better late than never. The time to cure the mischief of the past years is now. The initiative is expected to come on stream in a few weeks’ time.  Mega revenue will be generated from the expatriates, which current population is put at a little over 150,000. The plan by government is to deploy the revenue received from this source in massive investments in infrastructure development.  This is apart from the fact that more jobs will be provided or secured for Nigerians in companies that engage the services of expatriates to strike the obligatory balance or quota as agreed to by both parties. Overall, the Tinubu administration, which is struggling to raise money to drive the economy, has a historical opportunity to leverage this potential revenue source.  There are countries to reference to validate its new plan to impose some tariffs of sorts on working expatriates in Nigeria to generate the much-needed revenue for infrastructure development. Let us keep our fingers crossed as the federal government rolls out this policy soonest.

    • Momodu is a development journalist based in Abuja.

  • Remove tariffs on anti-diabetes drugs, others, Fed Govt urged

    The Federal Government has been urged to remove tariffs on imported anti-diabetes drugs and devices to make them affordable.

    Experts gave the advice at the capacity building workshop for reporters organised by a multinational pharmaceutical company, Sanofi Aventis Pharmaceuticals, as part of activities marking the World Diabetes Day.

    A major highlight of the workshop was the revelation that many sufferers of the disease could not control their blood sugar as the cost of drugs and monitoring devices have become too expensive and unreachable.

    A Senior Lecturer/Consultant Endocrinologist at the Department of Medicine, College of Medicine/University of Lagos, Lagos University Teaching Hospital, Dr Ifedayo Odeniyi, said diabetes is on the increase worldwide, especially in developing countries.

    He disclosed that over in 100,000 deaths were caused by the disease  in the country in 2013, adding that the disease affects about 5.5 per cent of the population and could rise to 6.1 percent, if urgent steps were not taken to curtail its spread.

    According to the medic, Nigeria has the third highest incidence of diabetes in Africa, after South Africa with 9.7 percent and Tanzania 7.8 percent.

    He regretted that many people do not know they have the disease because its symptoms occur when it has progressed to an advanced stage.

    He however said while the disease has no cure, people with diabetes could live to a ripe old age and enjoy a good quality of life, if they strive to control the disease.

    Diabetes control, he said, involved good diet, exercise, use of drugs and  compliance with the doctor’s instructions. He advised those with the disease to work with the health care givers in managing their condition.

    The goal of diabetes management, Odeniyi said, is to prevent complications which, when they occur, could be deadly or very expensive to manage.

    “Poorly managed diabetes leads to serious complications and early death,” he said.

    Such complications, he said, include blindness, kidney failure, heart diseases, infections, skin diseases, among several others.

    Head, External Affairs Sanofi Nigeria-Ghana, Mr. Oladimeji Agbolade, urged the participants to be relentless in their enlightenment efforts about diabetes, adding that the disease is fast becoming an epidemic worldwide.

    He urged the Federal Government to implement the proposed policy aimed at ensuring that every patient who reports in the hospital has their blood glucose measured  just as it is done with blood pressure to ensure early detection of the disease.

  • Fed Govt mulls tariffs review for IOCs, others

    The Federal Government is planning a downward review of the tariffs International Oil Companies (IOCs) and other investors operating in the oil and gas zones pay to its coffers.

    The idea is to ensure that oil majors such as Exxonmobil, Shell, Adax, Nigerian Agip Oil Company (NOAC), Total, Chevron and their local counterparts, get some respite and further operate well.

    It was gathered that the plan to review the tariffs paid by the local and foreign investors in the zones, have reached an advanced  stage and may come to an end as soon as other stakeholders provide their inputs on the issue.

    A source, who does not want to be mentioned, said the review would be holistic because it would mark a clear departure from the past, where some investors were involved in the process of providing the tariffs for the zones, while many were left out.

    The source said investors would pay less in importing oil and gas machineries/ equipment when the exercise is completed.

    Oil and Gas Free Trade Zones (OGFTA)’s Managing Director, Dr Umana Okon Umana, gave credence to this assertion when he said multinational oil companies, the OGFA, National Petroleum Investments Management Services (NAPIMS) and other licencees are going back to the drawing board, with a view to provide a new tariffs structure that would take care of operators’ interest in the zones.

    Umana, who spoke during interaction with investors in Onne,  Port Harcourt, Rivers State, said the need to cushion the effects of the harsh economy on the investors and further make them improve their productivity, informed the decision to reduce the tariffs.

    He said the plans to review the tariffs downward followed protests by some licensees on the issue, adding that the licensees have kicked against the implementation of the current tariffs regime in the Industry, known as Wide Standard Tariffs (IWST).

    However, efforts to speak to the Head, Legal Department OGFTA, Mr Wasiu Sule, whose department is charged with the responsibility of handling the exercise proved abortive as text message sent to him was not replied.

  • Govt to review tariffs , says Osinbajo

    Govt to review tariffs , says Osinbajo

    The Federal Government will review existing tariffs structure to remove impediments inhibiting the growth of local industries, the Vice President, Prof Yemi Osinbajo, has said.

    Osinbajo said the high tariffs imposed on local products are not encouraging growth, adding that the government is working towards restructuring the current tariff structure to discourage the importation of products.

    Osinbajo, represented by the Minister of Health, Prof Isaac Adewole, while declaring open the 89th annual National Conference of the Pharmaceutical Society of Nigeria (PSN) in Minna, yesterday, said the Federal Government recognised the importance of the health sector and is committed to expanding the sector by encouraging the growth of pharmaceutical industries in the country.

    “The role of pharmacists is very vital and critical to the development of Nigeria, they are an indispensable link. The PSN has contributed its quota to the development of Nigeria; they have contributed to the increase of quality healthcare in the country,” Osinbajo said.

    He stressed government’s determination to reposition the economy, by getting the fundamentals right under the reform efforts.

    In his address,  Prof  Adewole said government will continue to support the local production of pharmaceutical products.

    He challenged local manufacturing companies to produce long lasting treated insecticide mosquito nets to stop government from importing these products from other countries.

    “If the local manufacturers can produce the treated mosquito nets and they are of the right quality, the government will patronise them. We intend to give preference to local manufacturers of essential medicines,”Adewole said. He urged the pharmacists to join hands with the government in eliminating substandard and counterfeit products in the health sector.

    Earlier, PSN President,  Ahmed Yakasi, said the group was donating N50 million worth of various drugs to the Internally Displaced Peoples’ (IDP) camps in the Northeast, adding that pharmacists were ready to volunteer their services whenever it is needed in the  camps.

    He said for any nation to achieve sustainable developmenmt, food and medicines security must be accorded priority in the national agenda. He called for the implementation of the National Drug Distribution Guideline.

    Yakasi lamented that the atmosphere of competition, confrontation and distrust in the health sector is part of the  banes of the sector and have contributed to the poor indices of health in the country.

    He called on the Federal Government to give pharmaceutical manufacturers attractive incentives and support, pointing out that the country has the highest number of pharmaceutical manufacturers in sub-Saharan Africa.

  • Nigeria seeks reversal of Common External Tariffs on drugs

    The Federal Government is considering a review of the Common External Tariffs (CET) because the subsisting order is hurting the pharmaceutical industry.

    The Ministry of Health and his counterpart in Investment, Trade and Industry  are coordinating the government’s bid to reverse the CET, which has been widely criticised as unfair to the Nigerian pharmaceutical manufacturing industry.

    The Economic Community of West African States (ECOWAS), CET, which implementation began last year, reduces import duty tariff on finished pharmaceutical products to zero per cent compared with the five to 20 per cent duty on raw and packaging materials respectively. This scenario hugely favours importation to the detriment of local production.

    Nigeria accounts for about 75 per cent of the region’s pharmaceutical manufacturing with Ghana accounting for about 20 per cent, as against  other sub-regional countries that depend  mostly on importation. This development has prompted stakeholders  to impress it on government to take  measure to protect the local industry by invoking the Import Adjustment Tax of the CET, while working on a medium to long-term review of the agreement.

    Minister of Health, Prof. Isaac Adewole, said Nigeria has written a letter to the Ecowas seeking a reversal of the CET as it relates to the pharmaceutical industry, noting that the CET undermines the huge investments that had been made in the Nigerian pharmaceutical industry.

    “It doesn’t make sense to allocate higher tariffs to raw pharmaceutical materials, it doesn’t make sense, government is looking at the reversal,” Adewole said.

    Adewole recently undertook factory tour of the N9 billion World Health Organisation (WHO)-standard new pharmaceutical plant of Fidson Healthcare Plc.

    At least four companies, including May & Baker Nigeria Plc, invested in WHO-standard plants to further upscale  domestic manufacturing into global competitiveness.

    Adewole said the government would support the development of the pharmaceutical industry by patronising locally produced drugs and ensuring prompt payment for government orders.

    The Minister of Health, who was impressed by the breathtaking plant of Fidson Healthcare, said the government may consider granting waivers to the company to support it.

    He added that the Nigeria Sovereign Investment Authority (NSIA) will also be encouraged to consider supporting Fidson with funding for its raw materials and additional equipment.

    The Fidson Healthcare’s new plant, located in Ota, Ogun State, is reputed as the largest pharmaceutical manufacturing facility in Africa. It is one of the few that had been shortlisted for WHO certification in Nigeria. The new plant is equipped to produce six distinct product lines-tablets, capsules, oral liquids, creams and ointments, dry powder and intravenous infusions to meet Nigeria and regional medicine needs.

    The new manufacturing plant is expected to save and generate foreign exchange (forex), create employment, reduce health tourism and contribute meaningfully to the achievement of the Millennium Development Goals (MDG) of the Federal Government through job creation and reduction in infant mortality and maternal death.