The Nigeria Customs Service (NCS) has been directed to commence implementation of free import duty and exemption of Value-Added Tax for importation of basic food items.
Earlier, President Bola Tinubu had approved implementation of zero per cent import duty and exemption of Value-Added Tax on the items.
D’GalleryTV learnt that the Ministry of Finance confirmed the approval in a letter to the Nigeria Customs Service on August 8, 2024.
The NCS also confirmed the move in a document shared with newsmen.
The Comptroller-General of the NCS, Bashir Adeniyi, has instructed officials of the Service to begin enforcement measures.
In the circular titled: “Approval for the implementation of zero per cent duty rate on basic food items,” the NCS said the Ministry of Finance sent a letter to the Service, informing the agency that Tinubu had approved the implementation.
The letter dated August 14, 2024, and signed by the Deputy Comptroller-General, C.K Niagwan, disclosed that the food items include maize, husked brown rice, wheat, grain beans and millet.
According to her, the policy is restricted to the items listed and is with effect from July 15 to December 31, 2024.
“I am directed to forward herewith a copy of the Federal Ministry of Finance letter, confirming His Excellency, Mr President’s approval for the implementation of zero per cent duty rate and Value Added Tax exemption on some basic food items,” the letter read.
“You are to note the following, ‘the policy is restricted to the items listed in the letter and it is effective July 15, 24 until December 31, 24. The importation of these items shall be limited to investors with milling capacity and a verifiable Backward Integration Programme for some of the items.”
Niagwan also disclosed that the Finance Ministry would provide the list of importers and approved quotas during the implementation period and called for a 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 had, on July 10, announced suspension of duties, tariffs, and taxes on importation of food staples through land and sea borders as a solution to the current inflation in the country.
Against this backdrop, the NCS said the duty waiver on imported food stuff would be implemented within the next week.
In the first letter, the Finance Minister, Wale Edun, said the “measure which is geared towards ameliorating the high cost of food items in Nigerian markets shall be limited to the national supply gap to be determined by a committee set up by the minister.”
It showed that the government crashed the duty rate and levy from 30 per cent to zero for husked brown rice, from five per cent to zero for grain sorghum, millet, and maize, and removed the 20 per cent duty levy for wheat and beans.
Edun said importers applying for the duty waiver must have milling capacity and a verifiable backward integration programme.
BIP is the sourcing of raw materials locally to reduce dependence on foreign 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,” the minister said.
“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Programme for some of the items,” the minister said,” he added.
On Tuesday, the Comptroller-General of the Customs Service said the Federal Government would lose about N188bn in revenue due to the suspension of import duties on food commodities.
He, however, said that the Service would ensure adequate implementation by enlisting special corridors to clear imports of food items.
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