Customs to Implement Zero Percent Duty on Essential Food Items Following Presidential Approval

The Nigeria Customs Service (NCS) is set to implement a zero percent import duty and value-added tax (VAT) exemption on essential food items following approval by President Bola Tinubu.

The program, which was disclosed in a letter dated August 14, 2024, is a component of a larger plan to deal with national food shortages and inflation.

Deputy Comptroller-General C.K. Niagwan signed the directive, which states that millet, husked brown rice, wheat, grain beans, and maize are all covered by the policy.

Customs officers around the country will immediately apply it, and it will be in place from July 15 to December 31, 2024.

“This zero percent duty rate and VAT exemption would have a substantial influence on the affordability of Foodstuff for all Nigerians.” she stated.

President Tinubu’s approval comes as part of efforts to tackle the rising cost of living and improve food security in the country.

The move is expected to lower the prices of critical food items and ensure that Nigerians have access to these staples without undue financial burden.

“This is a proactive measure by the government to alleviate the challenges faced by the average Nigerian family,” added Niagwan.

Mr. Tunde Oladimeji, an economist at the Nigerian Economic Policy Institute, lauded the president’s decision, highlighting its potential to stabilize the economy.

“By removing import duties and VAT on these items, the government is not only reducing the financial strain on consumers but also encouraging a stable supply of these essential goods,” Oladimeji explained.

The policy is restricted to the items listed and is seen as a targeted approach to curbing food inflation, which has been a significant concern for both the government and the citizens.

Customs officers across the country have been instructed to facilitate the smooth implementation of the new duty-free regime and ensure compliance by importers.

“Our officers are fully prepared to execute this directive effectively, ensuring transparency and accountability in the process,” Niagwan affirmed.

The NCS has been proactive in disseminating information about the new policy to importers and distributors to ensure a seamless transition.

Importers are encouraged to take advantage of the duty-free period to increase the supply of these critical food items on the market.

As the policy rolls out, the NCS will monitor its implementation closely to ensure that the objectives are met. The agency has set up a task force to oversee the process and address any challenges that may arise during the implementation period.

With the customs service’s commitment to executing the policy efficiently, Nigeria is poised to see a significant improvement in the availability and affordability of essential food items, marking a crucial step towards enhancing the nation’s food security.