FG to lose N187bn in food import duty suspension – Customs

FG to lose N187bn in food import duty suspension – Customs

The Federal Government will forfeit about N187 billion due to the recent directive to suspend import duties on staple food items for six months.

Comptroller General of the Nigeria Customs Service, Bashir Adewale Adeniyi, discloses this on Tuesday.

He spoke during the 2nd Economic Confidential lecture and book presentation in his honour, titled “Impactful Public Relations in Customs Management”, held in Abuja.

Adeniyi said the suspension of customs duties and levies on key food staples, including beans, maize, rice, and wheat, is part of the government’s strategy to reduce the cost of food items.

However, this policy will result in significant revenue losses for the government.

He noted that between 2020 and 2023, these food imports generated around N3.81 trillion in revenue, including N189 billion in customs duties and over N500 billion from various government levies.

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“Wheat alone generated N3 trillion, maize N340 billion, rice N195 billion, and beans N146 billion. Therefore, the estimated revenue forfeiture from the suspension of import duties on these staple food items for six months is about N187 billion,” Adeniyi stated.

He added that the Customs awaited guidelines from the Ministry of Finance and would ensure proper implementation by designing special corridors for clearing food imports.

Vice President Kashim Shettima, represented by Dr. Tope Fasua, Special Adviser to the President on Economic Matters, expressed optimism that the government’s food reforms would soon positively impact the economy.

Adeniyi also handed over his vice chairmanship of the World Customs Organisation, North and Central African region, to his Malian counterpart, Ahmadou Kounate, during an official ceremony in Abuja.

The Customs boss emphasized the need for technology to advance customs practices, while Kounate pledged to enhance transparency, implement strategic action plans, and improve manpower development to boost trade facilitation.

FG to lose N187bn in food import duty suspension – Customs