The Nigeria Customs Service has unveiled guidelines for implementing a 150-day tariff waiver on specific staple foods.
This announcement was made in a statement released by Customs spokesperson Abdullahi Maiwada on Wednesday.
The waiver comes following the approval of a ‘zero tariff’ initiative by President Bola Tinubu.
The list of food items eligible for the zero tariff includes husked brown rice, sorghum, grain, millet, maize, wheat, and beans.
According to the statement, this measure is designed to combat the rising cost of essential food items in Nigeria, aiming to make these commodities more affordable for the general populace.
The statement read, “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 statement continued.
The government’s broader objective with this initiative is to address food security concerns and ensure that basic foodstuffs remain accessible to all Nigerians.
The statement further emphasized that this temporary measure is intended to address immediate challenges without compromising the long-term strategies established to protect local farmers and manufacturers.
It highlighted that the implementation of the policy would focus on bridging the national supply gap.
Companies eligible to participate in the zero-duty importation must be incorporated in Nigeria, have been operational for a minimum of five years, and must have complied with filing annual returns, financial statements, and tax obligations over the past five years.
Specifically, companies importing husked brown rice, grain sorghum, or millet are required to own a milling plant with a minimum capacity of 100 tons per day, have been in operation for at least four years, and possess adequate farmland for cultivation.
Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or agro-processing companies with an out-grower network dedicated to cultivation.
The Federal Ministry of Finance is tasked with periodically providing the Nigeria Customs Service with a list of approved importers and their quotas to facilitate the importation of these basic food items within the scope of this policy.
The policy mandates that at least 75% of the imported items must be sold through recognized commodities exchanges, ensuring that all transactions and storage are thoroughly documented.
Companies are also required to maintain detailed records of all related activities, which the government may request for compliance verification.
Should a company fail to meet its obligations under the import authorization, it will lose all waivers and be required to pay the applicable VAT, levies, and import duties.
Additionally, the same penalties apply if a company exports the imported items in either their original or processed form outside Nigeria.
The policy took effect on July 15 and will remain in force until December 31, 2024.
This move follows an earlier announcement by the Federal Government to suspend tariffs on staple foods as a measure to curb escalating food prices.
