The Nigeria Customs Service (NCS) has announced instructions for the implementation of a zero percent duty rate and Value Added Tax (VAT) exemption on some basic food items in response to directives from the President to lessen the suffering that Nigerians face as a result of high food costs.
Abdullahi Maiwada, the National Public Relations Officer for Customs, states that the policy will be in place from July 15, 2024, until December 31, 2024. This policy attempts to address issues with food security and lower the cost of necessities for citizens.
Maiwada said to participate in the zero-duty importation, companies must meet specific criteria, including being incorporated in Nigeria, operational for at least five years, and meeting tax obligations. Additional requirements apply for companies importing specific food items, such as owning milling plants or farmland.
He said the Federal Ministry of Finance will provide the NCS with a list of approved importers and quotas to facilitate the importation of these basic food items. Companies must sell at least 75% of imported items through recognized commodities exchanges, keep comprehensive records, and comply with government regulations to avoid penalties.
He said the NCS, under the leadership of its Comptroller General, Bashir Adewale Adeniyi, remains committed to supporting government policies to enhance food security and promote economic stability.
The Service sought the full cooperation of all stakeholders in implementing the initiative.
