Nigeria waives power meter import tax to enhance acquisition

NIGERIA – The Government of Nigeria has temporarily waived the 35% import adjust tax imposed on Fully Built Unit (FBU) electricity meters to allow the Nigerian Electricity Regulatory Commission (NERC) acquire more power meters for local use.

A statement from Nigeria’s Ministry of Finance, Budget and National Planning, said the tariff is under the 2019 fiscal policy measures for the implementation of Economic Community of West African States (ECOWAS).

The measure was also in line with Common External Tariff (CET) 2017 – 2022 of the Nigerian Customs Service (NCS), approved in 2015, according to the Ministry of Finance.

The adjustment of the import tax, according to the statement, was approved upon the request of Mrs Zainab Ahmed, the Minister of Finance, Budget and National Planning.

Mrs Ahmed is said to have requested the tax waiver to support the Nigerian Electricity Regulatory Commission in rolling 3 million electricity meters, which is under the Meter Asset Provider (MAP) framework.

The 35% tax which has now been waived was according to Mrs Zainab, was imposed on the recommendation of the Federal Ministry of Industry, Trade and Investment, to encourage local production.

The tax was further implemented by the Federal Government to protect investments in the local assembly of electricity meters, Mrs Zainab noted.

The Meter Asset Provide (MAP) regulation stipulates that a MAP firm must source a minimum of 30 percent of their contracted metering volumes from local meter manufacturers.

“However, the application of the 35 percent levy on electricity meters has created a significant challenge to the smooth implementation of MAP scheme of NERC,” the statement from the Ministry of Finance stated.

The statement further noted that 6 million electricity consumers have embraced the opportunities presented by MAP and signed off to pay for electricity meters at the regulated prices approved by NERC.

Nigeria’s Minister for Power Goddy Jedy-Agba said that soon Nigerians will have meters to know what they consume and pay for the same.

Once the meters are availed, Jedy-Agba expressed confidence that there should be a noticeable improvement both in Nigeria’s power supply and metering.

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