The Nigeria Customs Service has released guidelines for the enactment of a 150-day tariff exemption on selected essential food items. This was communicated through a statement by the Customs’ spokesperson, Abdullahi Maiwada, on Wednesday.
The decision follows the endorsement of the 'zero tariff' by President Bola Tinubu. Food items eligible for the zero tariff comprise husked brown rice, grain, sorghum, millet, maize, wheat, and beans.
The statement specifies that the initiative aims to ease the high cost of food items in the Nigerian market, making essential commodities more accessible to citizens. In response to the presidential directives aimed at mitigating the hardship caused by elevated 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 sanctioned the regulation for executing a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items.
This measure is designed to alleviate the high cost of food items in the Nigerian market, improving affordability for citizens. The initiative is part of the government’s broader efforts to tackle food security challenges and ensure the accessibility of basic foodstuffs to all Nigerians.
It is essential to emphasize that while this temporary measure aims to address current hardships, it does not detract from the long-term strategies in place to safeguard local farmers and protect manufacturers.
It is crucial to note that the implementation of this policy will prioritize addressing the national supply gap. To engage in the zero-duty importation of basic food items, a company must be incorporated in Nigeria, operational for at least five years, have submitted annual returns and financial statements, and fulfilled tax and statutory payroll obligations over the past five years.
Companies importing husked brown rice, grain sorghum, or millet need to possess a milling plant with a capacity of at least 100 tons per day, operate for at least four years, and have adequate 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 furnish 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 traded through recognized commodities exchanges, with all transactions and storage duly recorded. Companies must maintain comprehensive records of all related activities, which the government can request for compliance verification. Failure to meet obligations under the import authorization will lead to the loss of all waivers and the imposition of 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 policy is effective from July 15 until December 31, 2024.