This was after President Bola Tinubu approved the implementation of zero per cent import duty and exemption of Value-Added Tax on basic food items.
The Ministry of Finance confirmed the approval in a letter to the Nigeria Customs Service dated August 8, 2024. The Nigeria Customs Service also confirmed the development in a document to newsmen.
Responding, the Comptroller-General of the NCS, Bashir Adeniyi, instructed officials of the service to commence enforcement measures.
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.
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 next week.
In the first letter, the finance minister, Wale Edun, said the measure which is geared towards ameliorating the high cost of food items in the Nigerian market shall be limited to the national supply gap to be determined by a committee set up by the minister.
It showed that the government crashed the duty rate and levy from 30 per cent to zero for husked brown rice, from five per cent to zero for grain sorghum, millet, and maize, and removed the 20 per cent duty levy for wheat and beans.
Edun said importers applying for the duty waiver must have milling capacity and a verifiable backward integration programme.
BIP is the sourcing of raw materials locally to reduce dependence on foreign raw materials.
On Tuesday, the comptroller-general of the customs service said the Federal Government would lose about N188bn in revenue due to the suspension of import duties on food commodities.
Adeniyi said the service would ensure adequate implementation by enlisting special corridors to clear imports of food items