The common external tariff (CET) forEconomic Community of West African States (ECOWAS) wasadopted at a Heads of State Summit in October 2013 in Dakar.This paper assesses the potential impact on Nigeria ofimplementing the new ECOWAS CET. It uses the WorldBank's tariff reform impact simulation tool (TRIST) tosimulate three scenarios: (i) keeping in place currentimport bans and levies which are charged in addition totariffs, while implementing the CET tariff rate onnon-banned products, (ii) removing the import bans andimplementing the CET rate on all products, but keeping theadditional import levies in place, and (iii) fullyimplementing the CET on all products and completely removingimport bans and levies. The paper suggests that implementingthe CET will have significant and largely positive effectson Nigerian consumers and producers. This note is intendedto enrich the debate by presenting projections on the likelyeffects of CET implementation. To the extent possible withthe limited available data, it gives a comprehensiveoverview of the effects to be expected on governmentrevenue, the welfare of consumers, and the performance ofNigerian firms. It also discusses new opportunities forNigerian firms to benefit from the regional market that arelikely to arise if the CET is implemented. The note isorganized as follows: section one gives introduction.Section two describes Nigeria's current trade profilewith a particular focus on trade with the ECOWAS region.Section three makes use of the World Bank's TRIST toanalyze the impact of implementing the CET in Nigeria interms of changes in the level of protection by industry,government revenue from taxes levied at the border, consumerwelfare, and the competitiveness of Nigerian firms. Sectionfour shifts the focus beyond Nigeria's borders to lookat the regional market within ECOWAS.
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