President Bola Tinubu, on Wednesday, approved the implementation of zero percent import duty and exemption of value-added tax (VAT) on basic food items.
This is according to a circular seen by BusinessDay on Wednesday.
“This is to confirm that His Excellency, Mr. President has approved the implementation of Zero percent duty rate (0 percent) and Value Added Tax (VAT) exemption on the under-listed basic food items with effect from 15th July, 2024 until the 31st day of December 2024,” the circular read.
The circular said the policy is restricted to the items listed in the letter such as maize, millet, rice, wheat , among others, and it is effective from July 15 until December 31 2024.
The letter said this measure is geared towards ameliorating the high cost of food items in the Nigerian market and shall be limited to the national supply gap to be determined by a committee set up by the minister of agriculture.
“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Program for some of the items listed,” the circular noted.
Other items included in the zero duty policy include: husked brown rice, grain sorghum, and beans. These items had duty rate levy ranging from 30 percent – 5 percent.
Also on Wednesday, the Nigeria Customs Service (NCS) released guidelines for the implementation of zero import duty on food products.
A statement signed by Abdullahi Maiwada, national public relations officer, said to participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and must have been operational for at least five years.
Following President Bola Tinubu’s approval for the implementation of import duty waiver on food items, the Nigeria Customs Service (NCS) has announced the release of official guidelines for implementing a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items.
The directive aims to alleviate the financial burden on Nigerians by reducing the cost of essential commodities. The policy, effective from July 15, 2024, will run until December 31, 2024.
In the guidelines, the NCS outlined the eligibility criteria for companies wishing to participate in the zero-duty importation initiative, emphasizing the importance of supporting local food security while making essential items more affordable.
The guidelines also detail the specific food items covered under this policy and the compliance measures that importers must adhere to.
The basic food items eligible for the zero percent duty rate are as follows:
S/N Item Description ECOWAS CET H.S. Code Previous Duty Rate + Levy New Duty Rate
I. Husked Brown Rice 1006.20.00.00 30% 0%
II. Grain Sorghum – Other 1007.90.00.00 5% 0%
III. Millet – Other 1008.29.00.00 5% 0%
IV. Maize – Other 1005.90.00.00 5% 0%
V. Wheat – Other 1001.19.00.00 20% 0%
VI. Beans 0713.31.90.00 20% 0%
The Nigeria Customs Service, under the leadership of Comptroller General Bashir Adewale Adeniyi, urged all stakeholders to ensure full cooperation for the successful implementation of this initiative, which is part of the government’s broader efforts to stabilize the economy and enhance food security.