President Tinubu Approves Zero Percent Import Duty, VAT Exemption on Basic Food Items
The Nigeria Customs Service (NCS) has been directed to implement a zero percent import duty and exemption of Value-Added Tax (VAT) on basic food items, following the approval by President Bola Tinubu.
This decision aims to mitigate the rising cost of essential foodstuffs across the country, offering relief to Nigerians facing inflation and economic challenges.
The policy, which takes effect from July 15 to December 31, 2024, was confirmed by the Ministry of Finance in a letter to the Nigeria Customs Service dated August 8, 2024. In the letter, the ministry detailed the specific food commodities that qualify for the exemption, including maize, husked brown rice, wheat, grain beans, and millet.
In response to the directive, the Comptroller-General of the NCS, Bashir Adeniyi, issued a circular instructing customs officials to commence enforcement measures.
The circular, titled “Approval for the implementation of zero per cent duty rate on basic food items,” was signed by the Deputy Comptroller-General, C.K. Niagwan, and sent to customs offices nationwide on August 14, 2024.
According to the circular, the policy is restricted to the listed items and is expected to significantly reduce the cost of importing these essential foodstuffs into the country. By eliminating import duties and VAT on these items, the government aims to alleviate the financial burden on citizens and stabilize food prices.
This decision comes amid rising concerns about food security in Nigeria, with many households struggling to afford basic necessities. The zero percent import duty and VAT exemption are part of President Tinubu’s broader economic strategy to cushion the effects of inflation and make food more affordable for Nigerians.
Customs officials are expected to enforce the new policy immediately, ensuring that all eligible food items are exempted from import duties and VAT.
The NCS will also monitor the implementation to ensure compliance and prevent any exploitation of the policy by importers.
