THE Federal Government, through the Nigeria Customs Service (NCS), is set to commence implementation of the zero import duty on select food items comprising maize, grain, millet, and wheat into the country.
As a result, the Federal Ministry of Finance has approved new guidelines for the implementation of its policy on the total removal of import duties and value-added tax (VAT) on select food items.
The food items to be exempted include maize, husked brown rice, grain beans, wheat, and millet.
The import waiver was to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable to citizens
The policy is effective from July 15, 2024, and will remain in force until December 31, 2024, the government said.
In a circular issued on Wednesday, August 14, the Customs informed that the Federal Ministry of Finance had issued a letter, telling the agency that President Bola Tinubu has approved the implementation.
According to the circular signed by NCS deputy comptroller-general, C.K. Niagwan, the service said the food commodities include maize, husked brown rice, wheat, grain beans, and millet.
Recall, that the federal government announced on July 10 the suspension of duties, tariffs, and taxes on the importation of food staples through land and sea borders to reduce inflation.
On August 7, the NCS said the duty waiver on imported foods would be implemented within the next week.
In the letter, Wale Edun, the minister of finance, said the “measure which is geared towards ameliorating the high cost of food items in the Nigerian market shall be limited to the national supply gap to be determined by a committee set up by the Minister”.
The ICIR reported that the food inflation increased to 40.8 per cent in June which has Nigerians spending the largest percentage of their earnings on feeding.
Requirements for duty waiver
Edun said importers applying for the duty waiver must have milling capacity and a verifiable backward integration programme (BIP).
The BIP is the sourcing of raw materials locally to reduce dependence on foreign raw materials.
“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Programme (BIP) for some of the items,” the minister said.
Also, he said from time to time, during the implementation period, the ministry will furnish customs with the list of importers and their approved quotas to guide the importation of the basic food items.
Edun said customs must ensure strict compliance.
On Tuesday, Bashir Adeniyi, comptroller-general (CG) of NCS, said the federal government would lose about N188 billion in revenue due to the suspension of import duties on food commodities.
Adeniyi said the service would ensure adequate implementation by enlisting special corridors to clear imports of food items.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.