Economists React as Nigeria Reportedly Loses N34 Trillion to Import Duty Waivers

Economists and policy analysts have expressed concern following reports that Nigeria has forfeited an estimated N34 trillion through import duty waivers over the years, with many calling for greater transparency and a comprehensive review of the incentive policy.

The reported figure has reignited debate over the effectiveness of import duty exemptions, which are often granted by the Federal Government to encourage investment, support key industries, and reduce the cost of essential goods and production inputs.

Experts argue that while duty waivers can stimulate economic growth when properly targeted, excessive or poorly monitored exemptions could significantly reduce government revenue needed for infrastructure, healthcare, education, and other critical public services.

Several economists noted that Nigeria's growing fiscal challenges make it increasingly important to ensure that tax incentives deliver measurable economic benefits. They urged authorities to evaluate whether companies receiving waivers have fulfilled commitments related to job creation, local manufacturing, technology transfer, and investment expansion.

Some analysts also called for stronger oversight to prevent abuse of the waiver system, stressing that only sectors with clear national economic importance should continue to enjoy such incentives. They recommended regular audits and public disclosure of beneficiaries to improve accountability and public confidence.

Business groups, however, cautioned against completely eliminating duty waivers, arguing that certain industries depend on them to remain competitive amid high production costs, foreign exchange pressures, and inflation. They suggested that reforms should focus on improving efficiency rather than abolishing the incentives altogether.

The development has sparked wider discussions about Nigeria's revenue generation strategy, particularly as the government seeks to boost non-oil income and reduce budget deficits. Fiscal experts believe striking the right balance between attracting investment and protecting government revenue will be essential for long-term economic stability.

Observers say the debate is likely to influence future fiscal policies as authorities continue reviewing tax incentives and customs regulations to strengthen public finances while supporting sustainable economic growth.