President Bola Tinubu has approved zero import duty and Value-Added Tax (VAT) exemption on basic food items, aimed at reducing costs and increasing accessibility.
The Ministry of Finance confirmed the approval in a letter to the Nigeria Customs Service on August 8, 2024.
The Comptroller-General of Customs, Bashir Adeniyi, has directed officials to commence enforcement measures, ensuring seamless implementation of the new policy.
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 has approved the implementation.
The letter dated August 14, 2024, and signed by the Deputy Comptroller-General, C.K Niagwan, noted that the food commodities include maize, husked brown rice, wheat, grain beans, and millet.
She stated that the policy is restricted to the items listed and is effective from July 15 to December 31, 2024.
The letter read, “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.
“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.”
The deputy director further stated that the finance ministry would provide the list of importers and approved quotas during the implementation period and called for 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 circular added.
Recall that the Federal Government announced on July 10 the suspension of duties, tariffs, and taxes on the importation of food staples through land and sea borders to reduce inflation.
On August 7, the NCS said the duty waiver on imported foods would be implemented within the coming week.
