FG begins duty-free import of food items

The Nigeria Customs Service has been instructed to begin implementing the exemption from value-added tax and a zero percent import charge on staple foods.

This came about following President Bola Tinubu's approval of the introduction of a zero percent import fee and the exemption of basic food items from the value-added tax.
In a letter dated August 8, 2024, the Ministry of Finance confirmed the approval to the Nigeria Customs Service. The development was also verified by the Nigeria Customs Service in a document sent on Wednesday with one of our journalists.

In response, NCS Comptroller-General Bashir Adeniyi gave service personnel the order to start enforcing the law.
"Approval for the implementation of zero per cent duty rate on basic food items" is the title of the circular that the NCS said the Ministry of Finance sent a letter to the service, informing the agency that Tinubu has approved the implementation.

The letter dated August 14, 2024, and signed by the Deputy Comptroller-General, C.K Niagwan, noted that the food commodities include maize, husked brown rice, wheat, grain beans, and millet.
The policy, according to her, is limited to the things on the list and will be in place from July 15, 2024, until December 31, 2024.
The correspondence stated, "I am required to enclose a copy of the Federal Ministry of Finance letter, verifying the approval of His Excellency, Mr. President for the application of a zero percent duty rate and exemption from Value Added Tax on certain staple food items."

Please take note of the following: "The policy is only applicable to the items specified in the letter, and it will be in effect from July 15, 24 to December 31, 24. Only investors possessing milling capabilities and, in the case of particular items, a verified Backward Integration Program, will be permitted to import these goods.

Additionally, the deputy director said that the ministry of finance would provide the list of importers and approved quotas during the implementation period and called for wide coverage to ensure strict compliance.

“The Federal Ministry of Finance shall from time to time, during the implementation period, furnish the Nigeria Customs Service with the list of importers and their approved quotas to guide the importation of the basic food items. Ensure wide circulation for strict compliance, please,” the letter added.
Recall that the Federal Government announced on July 10 the suspension of duties, tariffs, and taxes on the importation of food staples through land and sea borders to reduce inflation.

On August 7, the NCS said the duty waiver on imported foods would be implemented within the next week.
Wale Edun, the minister of finance, stated in the first letter that any action taken to "address the high cost of food items in the Nigerian market shall be limited to the national supply gap to be determined by a committee set up by the minister."
The data demonstrated that the government eliminated the twenty percent duty levy for wheat and beans and slashed the duty rate and levy for husked brown rice from thirty percent to zero, as well as the five percent duty levy for millet, sorghum, and maize.

According to Edun, applicants for the duty-free importation must be able to mill materials and have a track record of backward integration.

BIP is the process of acquiring raw materials locally in order to lessen reliance on imported raw materials.
This measure which is geared towards ameliorating the high cost of food items in the Nigerian market shall be limited to the national supply gap to be determined by a committee set up by the minister.
"Investors possessing milling capabilities and a verifiable Backward Integration Program for certain items will be the only ones able to import them," the minister declared.

The Federal Government would lose over N188 billion in revenue as a result of the suspension of import tariffs on food commodities, according to the comptroller-general of the customs agency on Tuesday.

According to Adeniyi, the service will use designated corridors to process food imports in order to guarantee proper implementation.