Joyce Mmereole Okoli
In a significant move aimed at addressing the rising cost of essential food items in Nigeria, the Nigeria Customs Service (NCS) has announced the implementation of a Zero Percent Duty Rate and Value Added Tax (VAT) exemption on selected basic food items.
This initiative, which takes effect on July 15, 2024, and runs through December 31, 2024, is part of broader efforts to mitigate the financial strain on citizens caused by the increasing prices of essential goods.
The policy, approved by President Bola Ahmed Tinubu through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, aims to make essential food items more affordable for Nigerians.
The Nigeria Customs Service (NCS), under the leadership of Comptroller General Bashir Adewale Adeniyi, will oversee the regulation and enforcement of this initiative.
“This policy is a timely intervention to ease the burden on Nigerians who are grappling with high food prices,” stated the statement read.
“It reflects the government’s commitment to ensuring food security and making basic commodities accessible to all.”
Under the new guidelines, eligible food items include husked brown rice, grain sorghum, millet, maize, wheat, and beans. These items, previously subject to duty rates ranging from 5% to 30%, will now be imported duty-free, with VAT exemptions as well.
The NCS emphasized that this measure is designed to address immediate challenges without compromising long-term strategies to protect local farmers and manufacturers.
To participate in the zero-duty importation, companies must meet stringent criteria, including being incorporated in Nigeria for at least five years and maintaining operational and financial transparency.
Importers of specific grains like husked brown rice, sorghum, and millet must also own a milling plant with a capacity of at least 100 tons per day and have sufficient farmland for cultivation.
The Federal Ministry of Finance will periodically provide a list of approved importers and their quotas to facilitate this process. Companies are required to sell at least 75% of the imported food items through recognized commodities exchanges, with all transactions recorded for compliance purposes.
Failure to adhere to these guidelines will result in the loss of waivers and the imposition of applicable VAT, levies, and import duties.
The NCS has called on all stakeholders to cooperate fully in implementing this initiative, which is expected to bring much-needed relief to Nigerians during this period of economic difficulty.
The Service under the leadership of the Comptroller General of Customs, Bashir Adewale Adeniyi MFR remains dedicated to supporting government policies that enhance food security and promote economic stability across the country.