The Nigeria Customs Service (NCS) has started implementing the zero percent import duty and value-added tax (VAT) exemption on basic food items.
According to a circular on Wednesday, customs confirmed that the Ministry of Finance had informed the NCS via a letter that President Bola Tinubu had approved the policy’s implementation.
Following the approval, customs announced that the duty waiver became effective from July 15 and will remain in place until December 31.
The federal government initially announced on July 10 the suspension of duties, tariffs, and taxes on importing food staples through land and sea borders to curb inflation.
On August 7, the NCS stated that the duty waiver on imported food items would be fully implemented within the following week.
The circular, signed by C.K Niagwan, deputy comptroller-general, specified that the exempted food commodities include maize, husked brown rice, wheat, grain beans, and millet.
In the letter, Wale Edun, the Minister of Finance, noted that this initiative, aimed at alleviating the high cost of food in Nigeria, would be limited to the national supply gap determined by a committee established by the minister.
**Requirements for Duty Waiver**
Edun emphasized that importers seeking the duty waiver must possess milling capacity and a verifiable backward integration program (BIP).
Backward Integration Program (BIP) involves sourcing raw materials locally to reduce reliance on foreign materials.
“The importation of these items will also be restricted to investors with milling capacity and verifiable Backward Integration Programs (BIP) for certain commodities,” the minister added.
Additionally, Edun said that during the implementation period, the ministry would periodically provide customs with a list of importers and their approved quotas to regulate the importation of basic food items.
He also instructed customs to ensure strict adherence to the guidelines.
On Tuesday, Bashir Adeniyi, comptroller-general (CG) of the NCS, estimated that the federal government would lose approximately N188 billion in revenue due to the suspension of import duties on food commodities.
Adeniyi added that the NCS would ensure proper implementation by designating special corridors for clearing food imports.
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