FG launches duty-free importation of food items

The Nigeria Customs Service has been instructed to begin enforcing the zero percent import duty and Value-Added Tax exemption on basic food items, following President Bola Tinubu’s approval. The Ministry of Finance confirmed the directive in a letter dated August 8, 2024, which the Customs Service also acknowledged in a document obtained by NIGERIA NEWS 247.

In response, the Comptroller-General of Customs, Bashir Adeniyi, issued orders for the immediate implementation of the policy.

The circular, titled “Approval for the Implementation of Zero Percent Duty Rate on Basic Food Items,” detailed that the approved items include maize, husked brown rice, wheat, grain beans, and millet. The policy, effective from July 15 to December 31, 2024, is restricted to these specific items.

The letter, signed by Deputy Comptroller-General C.K. Niagwan, emphasized that the importation of these items is limited to investors with milling capacity and a verifiable Backward Integration Programme (BIP). The Ministry of Finance will periodically provide Customs with a list of approved importers and their quotas to ensure compliance.

This development follows the Federal Government’s July 10 announcement to suspend duties, tariffs, and taxes on food imports to combat inflation. On August 7, Customs indicated that the duty waiver would be enforced within the following week.

Finance Minister Wale Edun clarified that the policy aims to reduce the high cost of food in Nigeria and will be limited to addressing the national supply gap. Importers seeking the duty waiver must demonstrate milling capacity and a commitment to BIP, which focuses on sourcing raw materials locally to reduce reliance on foreign imports.

The Comptroller-General also noted that the Federal Government is expected to lose approximately N188 billion in revenue due to the suspension of import duties on these food items.