The Nigeria Customs Service (NCS) has announced the implementation of a 150-day tariff waiver on selected staple foods, following a directive from President Bola Tinubu.
The waiver, which takes effect from July 15 to December 31, 2024, aims to mitigate the rising cost of essential food items and improve affordability for citizens.
In a statement issued by Customs’ spokesperson, Abdullahi Maiwada, the NCS detailed that the tariff waiver applies to key food items, including husked brown rice, grain sorghum, millet, maize, wheat, and beans. This initiative is part of the government’s broader strategy to address food security challenges in Nigeria.
“The President, through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the implementation of a Zero Percent Duty Rate (0%) and VAT exemption on selected basic food items,” the statement read.
“This measure is aimed at alleviating the hardship faced by Nigerians due to high food prices by making essential commodities more affordable.”
The waiver targets companies that meet specific criteria, such as being incorporated in Nigeria, operating for at least five years, and complying with tax and statutory payroll obligations. Companies importing husked brown rice, grain sorghum, or millet must own a milling plant with a capacity of at least 100 tonnes per day and have sufficient farmland for cultivation. Similarly, importers of maize, wheat, or beans must be agricultural companies or feed mills/agro-processing companies with an established out-grower network.
The Federal Ministry of Finance will provide the NCS with a list of approved importers and their quotas to ensure compliance with the policy. At least 75% of imported items must be sold through recognised commodity exchanges, with all transactions and storage recorded. Companies are required to maintain comprehensive records for government verification. Failure to comply with the policy will result in the loss of waivers and the imposition of applicable VAT, levies, and import duties.
This temporary measure, while addressing current hardships, does not undermine the government’s long-term strategies to protect local farmers and manufacturers. The policy is designed to fill the national supply gap without compromising the sustainability of local production.
The announcement comes as part of the government’s ongoing efforts to reduce the burden of high food prices on Nigerians.
