Nigeria Customs highlights conditions for companies to access zero-duty food import waiver – Newstrends
Connect with us

Business

Nigeria Customs highlights conditions for companies to access zero-duty food import waiver

Published

5 months ago

on

Comptroller-General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi

Nigeria Customs highlights conditions for companies to access zero-duty food import waiver

The Nigeria Customs Service (NCS) on Wednesday announced the conditions that companies must meet to qualify for the government’s new zero per cent duty and VAT exemption on select food imports.

According to a statement by the Service’s spokesperson, Abdullahi Maiwada, companies wishing to import husked brown rice, grain sorghum, millet, maize, wheat, and beans at zero duty must be incorporated in Nigeria, operational for at least five years, and have a proven track record of filing annual returns, financial statements, and fulfilling tax obligations.

“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,” it said.

The policy, which became effective on 15 July and will run till 31 December, aims to reduce the cost of essential foods and improve food security across the country.

The NCS said the zero-duty initiative is designed to alleviate the high costs of these staple foods, which previously faced import duties ranging from 5 per cent to 30 per cent.

READ ALSO:

By eliminating these charges, the government aims to cushion the impact of inflation on household budgets, particularly for low-income families. However, the policy also includes measures to ensure compliance, requiring that at least 75 per cent of imported items be sold through recognised commodities exchanges and that all transactions and storage be documented.

It said the NCS, led by Comptroller General Bashir Adeniyi, has emphasised that while this temporary measure addresses immediate food security challenges, it does not undermine long-term strategies to support local farmers and manufacturers.

It said companies that fail to meet the outlined conditions risk losing their waivers and may be required to pay the applicable VAT, levies, and import duties. Also, any exported items in their original or processed form will be subject to these penalties.

The Federal Ministry of Finance will periodically provide the NCS with lists of approved importers and their quotas to facilitate compliance with the policy.

Nigeria’s Minister of Agriculture, Abubakar Kyari, recently revealed that the administration of President Bola Tinubu has decided to suspend duties, tariffs, and taxes on the importation of essential food items such as beans, wheat, and husked brown rice.

The country’s food prices have been rising sharply in recent years, a situation that worsened in 2023 when the president removed petrol subsidies and allowed the naira to float.

This economic shift has led to a steep increase in the cost of staple foods, including rice, wheat, and bread, pushing many Nigerians further into poverty and heightening food insecurity amid high inflation.

The persistent surge in prices over the past year has led to the closure of several farms and businesses, with many agricultural producers scaling back their output due to insecurity and unpredictable weather conditions affecting rural areas.

In response, the president declared a state of emergency on food insecurity last year, aiming to combat rising food costs. Despite these efforts, food inflation has continued unabated.

Nigeria Customs highlights conditions for companies to access zero-duty food import waiver

Related Topics:
Advertisement

Business

Naira exchanges N1,650/$ in parallel market

Published

2 hours ago

on

January 1, 2025

By

Naira exchanges N1,650/$ in parallel market

Yesterday, the Naira appreciated N1,650 per dollar in the parallel market, compared to N1,655 on Monday.

Similarly, the Naira appreciated to N1,535 per dollar in the official foreign exchange market.

Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the Nigerian Foreign Exchange Market (NFEM) fell to N1,535 per dollar from N1,537 per dollar on Monday, indicating N2 appreciation for the naira.

READ ALSO:

Consequently, the margin between the parallel market and NFEM rate narrowed to N115 per dollar from N118 per dollar on Monday.

 

Naira exchanges N1,650/$ in parallel market

Continue Reading

Business

Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

Published

14 hours ago

on

December 31, 2024

By

Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

The exchange rate between the naira and the dollar ended the year at N1,535/$1 representing a 40.9% depreciation for 2024.

The official exchange rate between the naira and dollar closed in 2023 at N907.11/$1 thus depreciating by 40.9% for the year which compares to a 49.1% devaluation at the end of 2023.

READ ALSO:

Nigeria introduced several foreign exchange policies in 2024 as the central bank expanded on market-friendly forex policies to attract foreign investors.

Meanwhile, on the parallel market where the exchange rate is sold unofficially, the naira exchanged for N1,660 to the dollar when compared to N1,215/$ according to Nairametrics tracking records. This represents a 26.8% depreciation.

 

Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation

Continue Reading

Business

Warri refinery: Marketers hopeful of further petrol price drop

Published

1 day ago

on

December 31, 2024

By

Warri refinery

Warri refinery: Marketers hopeful of further petrol price drop

There was excitement on Monday as the Warri Refining and Petrochemical Company (WRPC) commenced partial production.

This is coming after nearly a decade of dormancy as the 125,000 barrels per day refinery was confirmed to be working at 60 per cent capacity, according to the Nigerian National Petroleum Company Limited (NNPCL).

The refinery, inactive since 2015 due to prolonged repairs, reportedly began refining activities last Saturday at its Area 1 plant, where crude oil was successfully pumped into the system.

This was coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.

The NNPCL Group Chief Executive Officer, Mele Kyari, announced the resumption of operation at the Warri Refinery during a tour of the facility on Monday.

Kyari was seen in a video posted by Channels TV addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed.

READ ALSO:

Earlier, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.

He said though the repairs on the facility were not 100 per cent complete, operations had commenced.

He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”

With the addition of Warri Refinery, Nigeria’s refining capacity has further increased with marketers anticipating a further reduction in price of premium motor spirit (PMS).

The 650,000-barrel Dangote Refinery has commenced production in addition to the Port Harcourt Refinery with a total capacity of 210,000 barrels per day (bpd) comprising 60,000 bpd for the old plant and 150,000 bpd for the new plant.

It’s good for business, prices may reduce – Marketers

Major Energy Marketers’ Association of Nigeria (MEMAN) and the Independent Marketers Association of Nigeria (IPMAN) welcomed the revival of the Warri refinery, saying it would deepen competition, diversify supply and ultimately resort to price reduction.

Executive Secretary of MEMAN, Clem Isong in a chat with our correspondent stated that the Warri Refinery is the shortest route to the North, describing its revival as good news.

“The market becomes more competitive and we are diversifying supply,” he said.

On whether it would lead to price reduction, he stated, “There are many factors that affect price, competition is always good and you can always get your product at the best price.”

National Public Relations Officer of IPMAN, Alhaji Olanrewaju Okanlawon in a chat with our correspondent said, “If there is excess supply, it will keep bringing down the price. We now run a free market and it is about demand and supply. It will continue bringing down the price. It will decongest Lagos.”

Energy expert, Dr. Ayodele Oni said the resumption of Warri Refinery would boost the local refining capacity in addition to enabling the country to sell to other neighbouring countries.

“We can refine more and even have some to sell. We now stop being hewers of wood and drawers of water. We add value to what we produce and can make/ do more with our base resources. This is very pleasant news,” he said.

Warri refinery: Marketers hopeful of further petrol price drop

Continue Reading

Trending