The federal government Tuesday said the temporary suspension of duties and taxes on imported food items would crash prices of food items.
It also said “within the next week,” guidelines for the release of the food items to the public by the Nigerian Customs will be ready, while the implementation follows suit.
Comptroller-General of Customs Bashir Adeniyi announced this at the meeting of heads of security agencies in Abuja.
He said the Nigeria Customs Service (NCS) remains committed to implementing the policy outlines of the government towards ameliorating the hunger across the country.
The federal government had, through the NCS, announced the suspension of import duties on rice, flour, wheat and other essential food items to reduce the high costs of food items.
The decision was against the backdrop of the hunger and the consequent threat of a nationwide protest by some groups.
“Global inflation is impacting nations worldwide including Nigeria, to address this Federal Government through the Nigeria Customs Service is suspending import duties and taxes on essential food items to make them more affordable.
“We are committed to implementing this measure seamlessly to address the problem of hunger in our nation. We have streamlined export processes to ensure that Nigerian goods reach international markets efficiently. We have introduced tools like Advanced Ruling System, Authorized Economic Operator and Time Release Study to enhance trade, stimulate the economy and create opportunities,” Adeniyi had said while announcing the policy direction.
…FG assures
Speaking at the meeting of heads of security agencies, Adeniyi said: “The protest was premised on a number of things, one of them being to end hunger. We discovered that a significant amount of food consumed in Nigeria is imported. Importation takes some time. So, one of the things the president has done to cushion the effect of the cost of importation is to suspend customs duties and taxes on imported food items for a period of time.
“We believe that when this is implemented, it will help to bring down prices of food items in the markets. Nigerian Customs is committed to the implementation of this particular fiscal policy as enunciated by the government.
“What does this kind of intervention imply for the local markets? Because we are trying to address the interests of all stakeholders. Those that are going to enjoy these duty waivers and concessions are also being cultivated by Nigerian farmers.”
The Customs boss also said there was need to consider the interests of all the stakeholders before the policy implementation, saying some of the imported items already in the country would be cleared without duties and taxes.
“There is the issue of striking a balance between the long-term interests of Nigerian farmers, Nigerian stakeholders who are involved in the production of these items, and the short-term interests of food inflation.
“So, the guidelines are being worked out at the Ministry of Finance and I can assure you that within the next week, these guidelines will be ready and Nigerian Customs will begin implementation of these particular fiscal policies. So, I therefore urge Nigerians to be a little bit patient, believing that some of these items that have already arrived at our shores will be cleared without the imposition of Customs duty and taxes,” he said.
‘…1.4 million jobs in the offing’
And as part of measures to boost the nation’s economy, the federal government and the International Cotton Advisory Committee (ICAC) Tuesday agreed to kick-start the resuscitation of Nigeria’s cotton industry, to create over 1.4 million jobs annually in the cotton and textile sector.
This was the outcome of a meeting held between Vice President Kashim Shettima and a delegation from the ICAC, led by its Executive Director, Mr Eric Trachtenberg, at the Presidential Villa, Abuja.
Speaking at the meeting, Vice President Shettima urged stakeholders to come up with a roadmap for the revitalisation of the cotton and textile sector in Nigeria, stressing that “it is time to work more and talk less.”
Shettima assured that the Bola Ahmed Tinubu administration would make conscious efforts to ensure the country harnesses opportunities in the cotton value chain.
He acknowledged ICAC’s commitment to the development of the textile industry in Africa, stressing that “your diverse backgrounds in ICAC gives a nuance understanding of the complexities and opportunities in the cotton value chain.”
Lagos state Governor Babajide Sanwo-Olu said the state government would harness opportunities in the cotton value chain, given that it hosts the factories and the market as the critical components of the business ecosystem for the cotton sub-sector.
He said Lagos would support every effort by stakeholders to revamp the sector to enable the state sustain its status as the largest fashion hub in Africa.
The governor pledged the state’s readiness to offtake cotton produced in other parts of the country for companies based within the area.
Also speaking, Governor Hope Uzodinma of Imo state said the meeting with the delegation of ICAC, was the beginning of Nigeria’s quest to revamp the textile industry as part of the broad objective for industrialising the economy.
He said Imo state and the Southeastern region would key into the renewed effort to revamp the cotton and textile sector to create jobs for the people and for the overall industrialisation drive of the country.
“The opportunity created by the meeting is a new beginning in our quest for industrial recovery and creation of jobs for our teeming youths as well as an opportunity for a new partnership,” he said.
Also speaking, the Executive Director of ICAC said he was pleased with the level of interest and commitment shown by the leadership of the country and other stakeholders in reviving the industry in Nigeria.
Citing examples in China, India, Pakistan and other parts of the world, the ICAC team said the potentials in the cotton value chain was huge and had proven to be transformative.
He said cotton and textile offered competitive advantage and economic transformation domestically and internationally, with probability to generate immediate high quality jobs and in the future.
He said the ICAC would support Nigeria’s cotton value chain revamp by offering expert advice in improving productivity and boosting the value chain and investment facilitation.