In line with its pledge to arrest the pervading hunger among Nigerians, the federal government Wednesday rolled out guidelines for the implementation of the federal government’s Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items in the country, as approved by President Bola Ahmed Tinubu......See Full Story>>.....See Full Story>>
Announcing this in an electronic statement, Comptroller General Nigerian Customs Service(NCS) Adewale Adeniyi affirmed that the palliative policy designed to ameliorate the high price of basic commodity, had taken effect 15th of July and will run until the 31st December 2024.
The e-statement released by NCS National Public Relations Officer, Chief Superintendent of Customs Abdullahi Maiwada, also quoted the Customs CG as saying the measure was aimed at mitigating the high cost of food items in the Nigerian markets by making essential commodities more affordable for citizens.
He said the approval emanated from the office of the Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun.
…FG’s pledge
Addressing journalists last week, Adeniyi had said: “There is the issue of striking a balance between the long-term interests of Nigerian farmers, Nigerian stakeholders who are involved in the production of these items, and the short-term interests of food inflation.
“So, the guidelines are being worked out at the Ministry of Finance and I can assure you that within the next week, these guidelines will be ready and Nigerian Customs will begin implementation of these particular fiscal policies. So, I therefore urge Nigerians to be a little bit patient, believing that some of these items that have already arrived at our shores will be cleared without the imposition of Customs duty and taxes.”
…The guidelines
Announcing the guidelines, CG Adeniyi said the initiative was part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs were accessible to all Nigerians.
He said: “It is important to emphasise 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 statement said.
…Approved list of items
The NCS listed the “basic food items eligible for the zero percent duty rate” to include rice, maize, and sorghum among others.
“S/N Item Description ECOWAS CET H.S. Code Previous Duty Rate + Levy New Duty Rate.
“1006-Husked Brown Rice 1006.20.00.00 30% 0%; 1007-Grain Sorghum – Other 1007.90.00.00 5% 0%.
“III. Millet – Other 1008.29.00.00 5% 0%; 1005-Maize – Other 1005.90.00.00 5% 0%; 1006-Wheat – Other 1001.19.00.00 20% 0%; 1007-Beans 0713.31.90.00 20% 0%,” it highlighted.
According to him, the Federal Ministry of Finance will periodically provide the NCS with a list of importers and their approved quotas to facilitate the importation of these basic food items within the framework of this policy.
“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,” he stated.