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

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.

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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