FG’s Zero-duty grains import terminates Dec 31 — Customs

The Nigeria Customs Service (NCS), yesterday, disclosed that Zero-Duty grains importation policy of the Federal government became effective July 15 and terminates on December 31, 2024.

The NCS said: “President Bola Ahmed Tinubu, through the Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun, has approved the regulation for the implementation of a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items.

“This policy is effective from 15th July 2024 and will remain in force until 31st December 2024.”
The service further explained why it is prioritising tariff-free grains import, adding : “ that the importation would not be an all-comers affair and that only brown rice would be allowed under the initiative.
Companies willing to import rice, for instance, must have milling plants, with a capacity of at least 100 tons per day.

Meanwhile, the Comptroller-General (C-G) of NCS, Mr. Wale Adeniyi, has said that the Service is prioritizing the importation of tariff-free grains in order to give effect to President Bola Tinubu’s directive aimed at addressing hunger in the country.
He spoke at the Public Lecture and Book Presentation of Economic Confidential in Abuja, on Monday.
The C-G described food security as a national priority that required a well-coordinated approach of all stakeholders.
His words, “In a bold move to address the immediate challenge of high food prices, the President has directed the removal of tariffs and other import duties on key staples – rice, wheat, maize, and sorghum – for the next six months. This measure aims to drive down food prices and improve accessibility for the average Nigerian. As the Comptroller-General of Customs, I can assure you that we are fully committed to implementing this directive effectively.
Meanwhile, a statement , yesterday, by Abdullahi Maiwada, (CSC) read in part, “The measure aims to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.
“The initiative is part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.
“However, it is important to emphasize that while this temporary measure is intended to address current hardships, it does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.”
“It is pertinent to note that the implementation of this policy will focus on addressing the national supply gap.
“To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years. It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.
“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operated for at least four years, and have enough farmland for cultivation.
“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation.”
The basic food items eligible for the zero- percent duty rate were identified as: Husked Brown Rice, Grain Sorghum , Millet Maize, Wheat and Beans.
According to the NCS, the Federal Ministry of Finance would periodically provide it with a list of importers and their approved quotas to facilitate the importation of the food items within the framework of the policy.
It added, “The policy requires that at least 75% of imported items be sold through recognised commodities exchanges, with all transactions and storage recorded.
“Companies must keep comprehensive records of all related activities, which the government can request for compliance verification.
“If a company fails to meet its obligations under the import authorisation, it will lose all waivers and must pay the applicable VAT, levies, and import duties.
“This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria.
“The Nigeria Customs Service, under the leadership of Comptroller General of Customs, Bashir Adewale Adeniyi remains committed to supporting government policies to enhance food security and promote economic stability.
“The Service urges all stakeholders to cooperate fully in implementing this initiative for the benefit of all Nigerians.”