Zero-Duty, VAT exemption on essential food imports effective July 15 to year-end – Nigeria Customs Service 

The Nigeria Customs Service has announced the implementation of the duty waiver on essential food imports, effective from July 15, 2024, through December 31, 2024, to make basic food commodities more affordable.

In July, the federal government approved a 150-day duty-free window to facilitate the importation of maize, husked brown rice, and wheat as part of measures to address escalating food inflation.

This announcement on the timeline of the implementation of the duty waiver is contained in a statement released on Wednesday by Abdullahi Maiwada, Chief Superintendent of Customs and National Public Relations Officer for the Comptroller General of Customs.

The statement outlines the guidelines for the duty waiver, covering items such as husked brown rice, grain sorghum, millet, maize, wheat, and beans.

Although the policy officially took effect on July 15, 2024, the Customs Service has just announced it, providing clarity on the details and framework for its implementation, which will continue through December 31, 2024.

“Drawing from the Presidential directives aimed at alleviating the hardship faced by Nigerians due to the high prices of essential food items, the Nigerian Customs Service (NCS) is pleased to announce that His Excellency, the President of the Federal Republic of Nigeria Bola Ahmed Tinubu GCFR through the Honourable Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun has approved the regulation for the implementation of a Zero per cent duty rate and Value Added Text (VAT) exemption on selected basic food items. This policy is effective from 15th July 2024 and will remain in force until 31 December 2024,” the statement read in part.  

Furthermore, the statement noted that the duty waiver on these selected essential food imports will help reduce the high cost of food in Nigeria by making essential commodities more affordable for Nigerians.

However, it also emphasized that while this temporary measure is designed to address immediate difficulties, it does not compromise the long-term strategies established to protect local farmers and manufacturers.

Eligibility requirements for zero import duty policy 

The statement also provided detailed eligibility criteria for companies wishing to participate in the zero import duty policy on essential food items.

To qualify, companies must be incorporated in Nigeria and have been operational for at least five years, consistently filing annual returns, and financial statements, and paying all taxes and statutory payroll obligations during this period.

For those importing husked brown rice, grain sorghum, or millet, additional requirements include owning a milling plant with a capacity of at least 100 tons per day, which must have been operational for a minimum of four years, along with sufficient farmland for cultivation.

Similarly, companies importing maize, wheat, or beans must be agricultural enterprises with adequate farmlands or feed mills/agro-processing facilities that maintain an out-grower network for cultivation.

Compliance and monitoring framework 

The Federal Ministry of Finance will periodically supply the Nigeria Customs Service (NCS) with a list of approved importers and their quotas to facilitate the smooth importation of these basic food items within the framework of this policy.

Additionally, the policy mandates that at least 75% of the imported items be sold through recognized commodity exchanges, with all transactions and storage thoroughly documented.

Companies are required to maintain comprehensive records of all related activities, which the government may request for compliance verification.

Failure to meet the obligations under the import authorization will result in the company losing all waivers and being required to pay the applicable VAT, levies, and import duties.