The Nigeria Customs Service announced that the Federal Government may forfeit N188.37 billion in revenue due to the duty waiver given for staple food importation in six months.
This was disclosed by the Comptroller-General of Customs, Adewale Adeniyi at a press briefing in Abuja while speaking on the theme, ‘Facilitating food trade through efficient Customs process: Best practices’, according to The Punch.
It also announced that the country spent N3.82tn on the importation of wheat, beans, rice, and maize between 2020 and 2023.
According to the customs boss, the forfeiture demonstrates the government’s commitment to putting food security ahead of short-term revenue goals.
On July 8, 2024, the Federal Government announced a 150-day duty-free import window for agricultural supplies to help reduce food inflation in Nigeria. Maize, husked brown rice, wheat, and cowpeas are some of the food commodities.
The government also collaborated with states to expand land cultivation across the country.
As a result, the government halted duties, tariffs, and taxes on the import of certain food goods across land and maritime borders.
Giving updates on the directive, Adeniyi explained that the government’s initiatives, while crucial for addressing the nation’s food security challenges, have significant implications for the customs service.
According to him, as the agency in charge of trade facilitation and revenue collection at borders, the NCS is at the crossroads of these policies and their practical application.
He emphasized that the most immediate and significant effect is revenue forfeiture, as the government has pledged to making food more accessible and inexpensive for its inhabitants.
“The removal of tariffs and import duties on key staples, rice, wheat, maize, and sorghum (beans) for the next six months represents a considerable sacrifice in terms of potential revenue.
“Projecting based on recent trends, we estimate that the six-month tariff suspension could result in a revenue forfeiture of approximately N188.37bn,” Adeniyi expounded.
Analyzing this, he indicated that from 2020 to 2023, the entire import of various food items, including beans, maize, rice, and wheat, was N3.82 trillion.
“During this period, these commodities generated N192bn in customs duty and N562bn in levies paid to the government,” the CGC said.
The customs boss added that wheat alone accounted for N3.78tn in import value, generating N189bn as duty and N561bn as levy.
“Maize imports were valued at N34.3bn, contributing N2.3bn in duty. Rice, despite import restrictions, saw N195m in import value, yielding N19m in duty and N97m in levy. Beans imports were valued at N731m contributing N146m in duty,” Adeniyi stated.
