The Nigeria Customs Service (NCS) has been instructed to commence the enforcement of a new policy that implements zero per cent import duty and exempts Value-Added Tax (VAT) on essential food items. This directive follows President Bola Tinubu’s recent approval of the policy, aimed at alleviating the high cost of food in the country.
The Ministry of Finance confirmed the approval in a letter dated August 8, 2024, addressed to the NCS. The NCS also verified this development in a document shared with the press, indicating the immediate commencement of enforcement measures as directed by the Comptroller-General of the NCS, Bashir Adeniyi.
In an official circular titled “Approval for the Implementation of Zero Per Cent Duty Rate on Basic Food Items,” the NCS disclosed that the policy covers specific food commodities, including maize, husked brown rice, wheat, grain beans, and millet. The policy is effective from July 15 to December 31, 2024, and is restricted to these listed items.
The letter, signed by Deputy Comptroller-General C.K. Niagwan, emphasized that the importation of these items is limited to investors who have milling capacity and a verifiable Backward Integration Programme (BIP), which involves sourcing raw materials locally to reduce reliance on foreign imports. The Ministry of Finance will periodically provide the NCS with a list of approved importers and their quotas to ensure compliance during the implementation period.
This move is part of a broader government strategy to combat inflation and ease the financial burden on Nigerian citizens. On July 10, the Federal Government announced the suspension of duties, tariffs, and taxes on the importation of staple foods through land and sea borders. This was followed by a statement from the NCS on August 7, confirming that the duty waiver would be implemented within the following week.
The finance minister, Wale Edun, explained that the duty rate and levy were significantly reduced—from 30 per cent to zero for husked brown rice, and from five per cent to zero for grain sorghum, millet, and maize. Additionally, the 20 per cent duty levy on wheat and beans was removed. These measures are designed to fill the national supply gap, which will be determined by a committee established by the minister.
Despite the anticipated benefits, the Comptroller-General of the NCS noted that the Federal Government would incur a revenue loss of approximately N188 billion due to the suspension of import duties on these food items. Nevertheless, the NCS is committed to ensuring the policy’s effective implementation by establishing special corridors for the clearance of these imports.
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