Federal Government Launches Duty-Free Import Scheme For Food Items

Federal Government Launches Duty-Free Import Scheme For Food Items

The Nigeria Customs Service has been instructed to enforce a new policy eliminating import duties and Value-Added Tax (VAT) on essential food items. This directive follows President Bola Tinubu’s recent approval……. CONTINUE READING 

The Ministry of Finance confirmed the policy in a letter dated August 8, 2024, which was shared with the Nigeria Customs Service. The Customs Service officially acknowledged the implementation in a document received by our correspondent on Wednesday.

Comptroller-General of Customs, Bashir Adeniyi, has directed Customs officials to begin enforcing the new policy. According to the circular titled “Approval for the Implementation of Zero Percent Duty Rate on Basic Food Items,” the Ministry of Finance’s letter outlined that the policy, effective from July 15 to December 31, 2024, applies to maize, husked brown rice, wheat, grain beans, and millet.

The policy is restricted to these specific items and will apply only to investors with milling capacity and a verified Backward Integration Programme. The Ministry of Finance will provide Customs with a list of approved importers and quotas during the implementation period.

This policy follows the Federal Government’s earlier announcement on July 10, which suspended duties, tariffs, and taxes on food imports to combat inflation. The duty rate and levies have been reduced to zero for several food items, including husked brown rice, grain sorghum, millet, maize, wheat, and beans.

Finance Minister Wale Edun emphasized that the measure aims to alleviate high food prices and will be limited to addressing the national supply gap. Importers seeking the waiver must demonstrate milling capacity and a verifiable Backward Integration Programme.

The Customs Service expects a revenue loss of approximately N188 billion due to the suspension of duties. Adeniyi assured that the Service will implement the policy effectively, using special channels to expedite the clearance of food imports.

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