Business
‘Raising Duties On Luxury Items, Long Overdue’
An economist, Mr Emmanuel Eze, said that the raising of duties on luxury items by the Federal Government was sacrosanct, considering current economic challenges in the country.
Eze, Chief Executive Officer (CEO) of Perfecta Investment Trust, Lagos told newsmen yesterday in Lagos, that the move was long overdue.
The CEO, who lauded the Federal Government’s initiative, added that it would enable the government meet its revenue projections.
“Jerking up the duty on luxury items is in order due to the fall in global commodity prices.
“It could be classified as some form of wealth re-distribution, which is like taking from the rich to take care of the generality of the society.
“Besides, it will reposition home-made goods to take advantage of the market space.
“It will enable local manufacturers take over the huge opportunities provided by the tariffs, especially in the automobile industry.
“The duty will create some leverage for foreign companies to partner with indigenous ones in the production of such items, thereby boosting the domestic economy,” he said.
The Federal Government on Dec. 28, 2016, under its new Economic Community of West African States (ECOWAS) Common External Tariff (CET) regime, raised duties on some items.
The new rate is contained in a circular by the Minister of Finance, Mrs Kemi Adeosun, to the Nigeria Customs Service (NCS).
Importers of yachts and other luxury automobiles such as SUVs, boats, sports cars, and other vessels are now to pay 70 per cent of the value of the vehicles as taxes (duties) to the NCS.
Other major items affected include sugar cane and salt from 10 per cent to 70 per cent; alcoholic spirits, beverages and tobacco from 20 per cent to 60 per cent, and rice from 10 per cent to 60 per cent.
Also included on the list are packaged cement, from 10 per cent to 50 per cent; cotton/ fabric materials, from 35 per cent to 45 per cent, and used cars, popularly known as Tokunbo, from 10 per cent to 35 per cent.
Medicaments such as anti-malaria drugs and antibiotics; palm oil; wheat flour; tomatoes paste, and cassava products are also affected in the upward review of duties.
But essential industrial sector accessories, including bolts, industrial oils and other equipment are to enjoy a downward review, to spur local industrialisation.
Cornerstone of Financial Services
A survey of more than 1 000 global finance leaders undertaken by digital payment network Ripple shows that 72% of respondents believe they need to offer a digital asset solution to remain competitive.
According to Ripple, leaders from the banking, fintech, corporate and asset management sector have made it clear that the “digital asset revolution is happening now”.
“Digital assets are quickly becoming a cornerstone of financial services, underpinned by progressive regulation, growing interest from Tier-1 banks, a steady consumer shift from banks to fintech providers, and booming stablecoin adoption,” Ripple says.
The survey was conducted in early 2026 and the findings released in March.
Stablecoin Boon or Bane?
Ripple has experienced significant success in the stablecoin sector since launching its Ripple USD (RLUSD) stablecoin in 2024.
With a market cap of $1.56 billion, it is considered a major regulated player in the market.
No doubt the platform was pleased to learn through its own survey that financial leaders were most bullish about stablecoins.
Roughly three-quarters of respondents believed they could boost cash-flow efficiency and unlock trapped working capital.
Ripple noted that finance leaders were thinking about stablecoins as more than “just a new way to execute payments”; instead, they viewed them as effective tools for treasury management.
In March 2026, Ripple began testing a new trade finance model built around RLUSD in a bid to increase the speed of cross-border payments.
The pilot initiative, developed alongside supply chain finance company Unloq [https://unloq.com], is running on the XRP Ledger inside a testing framework developed by the Monetary Authority of Singapore.
The Asian city-state is one of the platform’s biggest growth markets.
The idea behind the project is to see whether stablecoin-based settlement can streamline trade finance, too often hampered by reliance on intermediaries and slow reconciliation.
The only potential drawback is that if the initiative takes off, the Ripple to USD price could be negatively affected.
Ripple has always championed its native XRP token as a bridge asset, the “middleman” in the process of a financial institution turning dollars in the US into pounds in the UK, for example.
Ripple converts dollars into XRP and then back into pounds.
If RLUSD can do exactly the same thing, questions will be asked about XRP’s relevance.
That is a bridge Ripple will have to cross if it gets to that point.
Tokenisation Partners
Another interesting finding from Ripple’s survey is that most banks and asset managers are seeking tokenisation partners to help execute their strategies.
Some 89% of respondents said digital asset storage and custody were top priority. “Token servicing/lifecycle management also ranks highly for banks at 82%, while asset managers place greater emphasis on primary distribution at 80%,” Ripple found.
The survey also revealed that just more than half of fintechs and financial institutions want an infrastructure provider that can offer a “one-stop-shop solution”. This rose to 71% among corporate financial leaders.
Ripple attributes this to institutions and firms wanting uncomplicated, cohesive systems.
Infrastructure Rules
In its final analysis, Ripple says companies across the board are looking for partners and solutions that are “secure, compliant, battle-tested and that enable growth and execution”.
“The message is clear: infrastructure decisions made today will shape competitive positioning tomorrow.”
No surprise that this is precisely where Ripple is placing much of its focus.
