In a bid to alleviate the rising cost of food items in Nigeria, the Federal Government has directed the Nigeria Customs Service (NCS) to implement a zero per cent import duty and exemption of Value-Added Tax (VAT) on selected basic food items. This directive follows the approval by President Bola Tinubu and is part of the government’s broader strategy to tackle food inflation and ensure affordability for consumers.
The Ministry of Finance confirmed the presidential approval in a letter dated August 8, 2024, which was subsequently relayed to the NCS. The Comptroller-General of Customs, Bashir Adeniyi, has instructed customs officials to begin enforcement immediately, as outlined in a circular titled “Approval for the Implementation of Zero Per Cent Duty Rate on Basic Food Items.”
The items covered by this policy include essential staples such as maize, husked brown rice, wheat, grain beans, and millet. The policy is set to be effective from July 15 to December 31, 2024, and is specifically restricted to these listed commodities.
In line with the directive, the importation of these food items will be limited to investors who possess milling capacities and can demonstrate a verifiable Backward Integration Programme (BIP). The BIP requirement ensures that importers source raw materials locally, reducing dependence on foreign inputs and supporting the domestic agricultural sector.
The Ministry of Finance will provide the NCS with a list of approved importers and their quotas during the implementation period to ensure proper regulation and compliance. This measure is part of the government’s effort to address the national supply gap of essential food items and stabilize the market.
This policy follows an earlier announcement by the Federal Government on July 10, 2024, which suspended duties, tariffs, and taxes on the importation of food staples through both land and sea borders. The aim is to reduce the financial burden on Nigerians amid soaring food prices.
However, the Comptroller-General of Customs, Bashir Adeniyi, noted that the implementation of this policy would result in a significant revenue loss for the government, estimated at around N188 billion. Despite this, the NCS is committed to ensuring the smooth implementation of the directive by setting up special corridors for the clearance of food imports.
The government’s decision to lower the duty rate and levy for these essential food items reflects its commitment to addressing food insecurity and inflationary pressures in the country, providing much-needed relief to Nigerian households.
