The Nigeria Customs Service (NCS) has announced the guidelines for a 150-day tariff waiver on selected staple foods, following President Bola Ahmed Tinubu’s approval. This measure, effective from July 15, 2024, through December 31, 2024, aims to alleviate the high cost of essential food items in Nigeria.
Key Details of the Tariff Waiver:
1. Food Items Covered:
– Husked brown rice
– Grain sorghum
– Millet
– Maize
– Wheat
– Beans
2. Objective:
– To mitigate the high cost of these food items and make them more affordable for Nigerian consumers.
– Part of broader government efforts to address food security challenges and ensure accessibility of basic foodstuffs.
3. Eligibility Criteria:
– General Requirements:
– Companies must be incorporated in Nigeria.
– Must have been operational for at least five years.
– Must have filed annual returns and financial statements and paid all taxes and statutory payroll obligations for the past five years.
– Specific Requirements:
– For husked brown rice, grain sorghum, or millet imports:
– Ownership of a milling plant with a capacity of at least 100 tons per day.
– Milling plant must have been operational for a minimum of four years.
– Sufficient farmland for cultivation.
– For maize, wheat, or beans imports:
– Agricultural companies with adequate farmlands.
– Feed mills or agro-processing companies with an out-grower network for cultivation.
4. Compliance and Monitoring:
– Importation Process:
– The Federal Ministry of Finance will provide the NCS with a list of approved importers and their quotas.
– At least 75% of the imported items must be sold through recognized commodity exchanges, with thorough documentation of transactions and storage.
– Record-Keeping:
– Companies must maintain comprehensive records of all activities related to the importation of these items.
– Non-compliance will result in the loss of waivers and the requirement to pay applicable VAT, levies, and import duties.
5. Policy Impact:
– The tariff waiver is intended to address the immediate challenge of high food prices while ensuring that long-term strategies to protect local farmers and manufacturers are not compromised.