The Federal Government of Nigeria has approved the implementation of an electronic monitoring and evaluation framework (M & E) to enhance the current Import Duty Exemption Certificates (IDEC) process. This development comes as part of efforts to streamline tax expenditures associated with IDEC issuance.
According to a statement by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, the introduction of this framework aims to reduce tax expenditures resulting from the granting of IDEC. The policy will equip the Federal Ministry of Finance with an automated tool for more effective monitoring and evaluation of the impact of customs duty exemptions issued to various entities, including government agencies, companies, NGOs, and international organizations.
Key features of the Integrated Monitoring and Evaluation Platform (IMEP) include a duty claw-back mechanism, electronic report generation, centralized database management, factory geo-location tagging, validation of industry qualification status, inter-agency integration, incentive tracking, and issuance of Demand Notices to defaulters.
The IMEP is designed to curb ineligible applications, ensure strict compliance with fiscal policy measures, and provide comprehensive impact analysis of tax incentives on the economy. By enhancing transparency and accountability in the IDEC process, the framework aims to mitigate misuse of tax expenditures, facilitate economic outcomes from fiscal incentives, and strengthen direct measurement of their impact on the economy.
Mr. Edun emphasized that the ultimate goal of the IMEP is to reduce the overall cost of tax expenditure and ensure that tax incentives contribute positively to economic growth and development.