The Nigeria Customs Service (NCS) announced on Wednesday that President Bola Tinubu has approved the implementation of a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items.
This policy, aimed at alleviating the economic burden on Nigerians due to soaring food prices, will take effect from July 15, 2024, and remain in force until December 31, 2024.
The approval, communicated through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, is part of the government’s efforts to mitigate the impact of rising food costs on the population.
Customs spokesman Abdullahi Maiwada, in a statement, emphasized that this temporary measure is designed to address immediate hardships without compromising the long-term strategies in place to support local farmers and protect manufacturers.
“The move is intended to alleviate the hardship faced by Nigerians due to the high prices of essential food items,” Maiwada stated.
He further explained that the policy’s implementation would focus on addressing the national supply gap, ensuring that the most affected items are made available at more affordable prices.
The Customs spokesman outlined specific criteria for companies wishing to participate in the zero-duty importation program. Eligible companies must be incorporated in Nigeria and operational for at least five years, having consistently filed annual returns, financial statements, and fulfilled tax and statutory payroll obligations during that period.
For companies importing husked brown rice, grain sorghum, or millet, additional requirements include ownership of a milling plant with a capacity of at least 100 tons per day, which must have been in operation for at least four years, along with sufficient farmland for cultivation.
Companies importing maize, wheat,or beans must either be agricultural companies with adequate farmland or feed mills/agro-processing companies with an established out-grower network for cultivation.
This policy is expected to provide significant relief to Nigerian consumers by lowering the cost of essential food items while ensuring that the country’s agricultural sector remains protected.
The NCS emphasized that this initiative is a short-term solution designed to address current supply challenges and is part of broader efforts to stabilize food prices and support the local economy.