The Nigeria Customs Service has announced guidelines for the
implementation of a 150-day tariff waiver on selected staple foods. This was disclosed in a statement by Customs’ spokesperson,
Abdullahi Maiwada on Wednesday. The development followed the approval of the ‘zero tariff’
by President Bola Tinubu. Food items to enjoy the zero tariff include husked brown
rice, grain, sorghum, millet, maize, wheat and beans. The statement said the measure is aimed at mitigating the high
cost of food items in the Nigerian market by making essential commodities more
affordable for citizens. “Drawing from the Presidential directives aimed at
alleviating the hardship faced by Nigerians due to high prices of essential
food items, the Nigeria Customs Service (NCS) is pleased to announce that His
Excellency, the President of the Federal Republic of Nigeria Bola Ahmed Tinubu
GCFR through the Honourable Minister of Finance and the Coordinating Minister
of the Economy, Olawale Edun has approved the regulation for the implementation
of a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on
selected basic food items. “This measure aims to mitigate the high cost of food items
in the Nigerian market by making essential commodities more affordable for
citizens. “The initiative is part of the government’s broader efforts
to address food security challenges and ensure that basic foodstuffs are
accessible to all Nigerians. “However, it is important to emphasize that while this
temporary measure is intended to address current hardships, it does not
undermine the long-term strategies put in place to safeguard local Farmers and
protect Manufacturers. “It is pertinent to note that the implementation of this
policy will focus on addressing the national supply gap. To participate in the
zero-duty importation of basic food items, a company must be incorporated in
Nigeria and have been operational for at least five years. It must have filed
annual returns and financial statements and paid taxes and statutory payroll
obligations for the past five years. “Companies importing husked brown rice, grain sorghum, or
millet need to own a milling plant with a capacity of at least 100 tons per
day, operate for at least four years and have enough farmland for cultivation.
Those importing maize, wheat, or beans must be agricultural companies with
sufficient farmland or feed mills/agro-processing companies with an out-grower
network for cultivation. “The Federal Ministry of Finance will periodically provide the
NCS with a list of importers and their approved quotas to facilitate the
importation of these basic food items within the framework of this policy. “The policy requires that at least 75% of imported items be
sold through recognized commodities exchanges, with all transactions and
storage recorded. “Companies must keep comprehensive records of all related
activities, which the government can request for compliance verification. If a
company fails to meet its obligations under the import authorization, it will
lose all waivers and must pay the applicable VAT, levies, and import duties. “This penalty also applies if the company exports the
imported items in their original or processed form outside Nigeria,” the
statement reads. The policy is effective from July 15 until December 31,
2024.
Recall that the Nigerian government announced a plan to
suspend tariffs on staple food to reduce rising food prices.
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