The Nigeria Customs Service has introduced guidelines to implement a 150-day tariff waiver on select staple foods.
This initiative follows the approval of a ‘zero tariff’ policy by President Bola Tinubu, as announced by Customs spokesperson Abdullahi Maiwada on Wednesday.
The waiver applies to specific food items, including husked brown rice, sorghum, millet, maize, wheat, and beans. This measure is part of the government’s effort to counter the rising cost of essential food items, aiming to make these commodities more affordable for Nigerians.
In a statement, Customs highlighted the policy’s goal of easing the burden of high food prices on the population. “Following Presidential directives aimed at alleviating the hardship faced by Nigerians due to high prices of essential food items, the Nigeria Customs Service announces that His Excellency, President Bola Ahmed Tinubu GCFR, through the Honourable Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun, has approved the regulation for the implementation of a Zero Percent Duty Rate (0%) and Value Added Tax exemption on selected basic food items,” the statement read.
This temporary measure is intended to address immediate food security concerns while ensuring that basic foodstuffs remain accessible to all Nigerians. The policy will focus on bridging the national supply gap, without compromising long-term strategies to protect local farmers and manufacturers.
Eligible companies participating in the zero-duty importation must be incorporated in Nigeria, have been operational for at least five years, and must have complied with filing annual returns, financial statements, and tax obligations over the past five years. Specific requirements apply to companies importing husked brown rice, sorghum, millet, maize, wheat, or beans, including operational capacities and ownership of adequate farmland.
The Federal Ministry of Finance will periodically provide the Nigeria Customs Service with a list of approved importers and their quotas to facilitate this policy. The policy also mandates that 75% of the imported items must be sold through recognized commodities exchanges, ensuring transparency and thorough documentation.
Companies are required to maintain detailed records of all related activities, subject to government verification. Non-compliance with the policy’s terms will result in the loss of waivers and the imposition of applicable VAT, levies, and import duties. Additionally, companies exporting imported items in their original or processed form outside Nigeria will face similar penalties.
This policy, effective from July 15, will remain in force until December 31, 2024. It follows an earlier government announcement to suspend tariffs on staple foods as a measure to curb escalating food prices.
