Nigeria Customs Service Directed to Implement Zero Import Duty on Basic Food Items

The Nigeria Customs Service has been instructed to start implementing a zero per cent import duty and exemption of Value-Added Tax on basic food items, following President Bola Tinubu’s approval of the policy. The Ministry of Finance confirmed the approval in a letter to the Nigeria Customs Service dated August 8, 2024.

According to the letter, the policy is restricted to the listed food commodities, including maize, husked brown rice, wheat, grain beans, and millet. The policy is effective from July 15 to December 31, 2024, and the importation of these items will be limited to investors with milling capacity and a verifiable Backward Integration Programme.

The Comptroller-General of the NCS, Bashir Adeniyi, has instructed officials of the service to commence enforcement measures. In a circular titled “Approval for the implementation of zero per cent duty rate on basic food items”, the NCS stated that the Ministry of Finance sent a letter to the service, informing the agency that Tinubu has approved the implementation.

The policy aims to reduce the high cost of food items in the Nigerian market. The Federal Government had earlier announced the suspension of duties, tariffs, and taxes on the importation of food staples through land and sea borders to reduce inflation. The duty waiver on imported foods is expected to be implemented within the next week.

The Comptroller-General of the customs service, Bashir Adeniyi, said the Federal Government would lose about N188bn in revenue due to the suspension of import duties on food commodities. However, the service will ensure adequate implementation by enlisting special corridors to clear imports of food items.

The policy is expected to benefit importers who meet the requirements, including having milling capacity and a verifiable backward integration programme. The Backward Integration Programme is the sourcing of raw materials locally to reduce dependence on foreign raw materials.

The implementation of the policy is expected to have a positive impact on the Nigerian economy, reducing the cost of food items and making them more accessible to the general public.