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  Nigerian President, Muhammadu Buhari, has approved a one-year deferment plan for the 35% import adjustment tax which has been imposed on the fully built unit (FBU) electric meters HSCode 9028.30.00.00 provided for in the 2019 fiscal policy measures. This new development was revealed in a statement issued by (Mr Abdullahi Tanko) the special adviser on communication to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed.
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Part of plans by the Nigerian government to improve and tackle the electricity challenges confronting Nigeria is the Economic Community of West African States (ECOWAS) common external tariff (CET) 2017 – 2022. In a bid to encourage efforts made by the Nigerian Electricity Regulatory Commission (NERC) towards rolling as much as three million electric meters in the country which is under the framework of the meter asset provider (MAP), Nigeria’s Minister of Finance, Budget And National Planning, Mrs Zainab Ahmed,  requested for the deferment.
“The 35 per cent levy was imposed on the recommendation of the Federal Ministry of Industry, Trade and Investment, to encourage local production, as well as protect investments in the local assembly of electricity meters. An important feature of the MAP regulation is a gradual upscaling of the patronage of local manufacturers of electricity meters with an initial minimum local content of 30 per cent with the potential of significant job creation in the area of meter assembly, installation k and maintenance. This is as provided in Section 9 of the MAP regulations that “MAPs shall source a minimum of 30 percent of their contracted metering volumes from local meter manufacturing companies in Nigeria. Further changes to the minimum local content thresholds shall be as specified in the NERC local content regulations.” Zainab Ahmad
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Despite the fact that the 35% levy pre-dates back to 2015, the regulations set for MAP by the NERC in 2018 was aimed at bridging the electricity metering gap in Nigeria. Zainab also pointed out the fact that the new development has been embraced by electricity consumers in Nigeria as they are willing to utilize opportunities presented by the MAP regulations and are equally ready to make payments for electric meters at regulated prices approved by NERC. So far, six million persons have been captured and shown strong interest in the electric meters.
“Some of the approved investors under the scheme have also, prior to the implementation of the appropriate HS Code 9028.30.00.00 for the importation of electricity meters, proceeded to import a significant stock of meters for rollout. This is in line with the timelines issued by NERC and the service level agreement agreed with the Electricity ko2Distribution Companies (DISCOs).” Zainab
Source: Guardian NG Featured Image Source: This Day Live
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This article was first published on 31st August 2020

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I am a Lion, I love to hit heights that seem impossible so I can motivate others and prove doubters wrong. For me, impossible is nothing. I'm open to learning and I love to read, travel and meet new faces.

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