- Comptroller-General of Customs, Adewale Adeniyi
By Anthony Nwachukwu
The Nigeria Customs Service (NCS) has announced the guidelines for the implementation of a zero per cent duty rate and Value Added Tax (VAT) exemption for husked brown rice, beans and wheat, as the Federal Government moves to alleviate the hardship arising from high prices of essential food items.
Others listed in the six selected basic food items are grain sorghum, millet and maize, according to the implementation guidelines approved for the NCS by the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, which will last from July 15 till December 31, 2024.
According to a statement from the Customs National Public Relations Officer, Mr. Abdullahi Maiwada, the previous duty rate plus levy for husked brown rice was 30 per cent, grain sorghum was 5 per cent, millet was 5 per cent, maize was 5 per cent, wheat was 20 per cent, and beans, 20 per cent.
Announcing the guidelines Wednesday, the NCS said the initiative is part of government’s “broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.
“This measure aims to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.”
Nevertheless, it emphasised that the focus of this temporary measure is to address the current hardships occasioned by the national supply gap and “does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.”
Meanwhile, any company to participate in the initiative must be incorporated in Nigeria and must have been operational for at least five years, the guideline read further. Also, “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 further held that 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 the policy.
Also, “the policy requires that at least 75 per cent 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.”
On their part, the Comptroller-General of Customs, Mr. Adewale Adeniyi, has reaffirmed the agency’s commitment to streamlining processes that will facilitate the food security initiative.
Speaking Tuesday at the launch of the book, “Impactful Public Relations in Customs Management,” authored by Image Merchants Promotion Limited, Adeniyi said the aim is to ensure the swift importation of food items, adhering to standards that reduce costs and lower consumer prices.
