The Federal Government has released detailed guidelines for implementing the “Zero Percent Duty Rate and Value Added Tax” exemption on select basic food items, a move aimed at easing economic hardship.
This announcement was made in a statement issued by Abdullahi Maiwada, the spokesperson for the Nigeria Customs Service (NCS), on Wednesday in Abuja.
Maiwada stated that President Bola Tinubu approved the guidelines through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The zero-duty policy, announced earlier by the Minister of Agriculture and Food Security, Abubakar Kyari, on July 8, suspends duties, tariffs, and taxes on specific imported food items such as maize, husked brown rice, wheat, and cowpeas.
According to the guidelines, the policy is effective from July 15 and will run until December 31.
The policy specifies that only companies incorporated in Nigeria and operational for at least five years are eligible to participate in the zero-duty importation of these staple foods.
Eligible companies must have filed annual returns, and financial statements, and paid taxes and statutory payroll obligations for the past five years.
Additionally, companies importing husked brown rice, grain sorghum, or millet must own a milling plant with a capacity of at least 100 tonnes per day, operate for at least four years, and have sufficient farmland for cultivation.
For companies importing maize, wheat, or beans, they must either be agricultural companies with adequate farmland or feed mills/agro-processing companies with an out-grower network for cultivation.
The Federal Ministry of Finance will periodically update the Nigeria Customs Service with a list of approved importers and their quotas to ensure smooth operation within the policy’s framework.
The policy mandates that at least 75% of imported items be sold through recognized commodity exchanges, with all transactions and storage thoroughly documented.
Companies are required to maintain comprehensive records of all activities related to the policy, which the government may request for compliance verification.
Failure to meet obligations under the import authorization will result in the loss of all waivers, and companies will be required to pay the applicable VAT, levies, and import duties.
This penalty also applies if the company exports the imported items, whether in their original or processed form, outside Nigeria.
Maiwada emphasized that while this policy is a temporary measure to address current economic challenges, it does not compromise the long-term strategies in place to protect local farmers and manufacturers.
Previously, the duty rate and levy for husked rice stood at 30%, beans at 20%, wheat at 20%, while millet, maize, and grain sorghum were at 5%.
NAN
