Federal Government to Begin Suspension of Customs Duty on Imported Food Items
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The Federal Government has announced that the guidelines for the suspension of customs duty and taxes on imported food items will come into effect next week. This decision, revealed on Tuesday, follows the approval of a 150-day duty-free window in July to allow the importation of maize, husked brown rice, and wheat. The initiative is part of the Presidential Accelerated and Stabilisation Advancement Plan, aimed at combating the escalating food inflation across the country.
At a meeting of heads of security agencies in Abuja, the Comptroller-General of Customs, Bashir Adeniyi, confirmed that the implementation of the policy would commence once the guidelines are finalised. He explained that the delay in implementation was due to the need to consider the interests of all stakeholders, including farmers.
“There is the issue of striking a balance between the long-term interests of Nigerian farmers and stakeholders who are involved in the production of these items, and the short-term interest of food inflation,” Adeniyi stated. “The guidelines are being worked out at the Ministry of Finance, and I can assure you that within the next week, these guidelines will be ready. The Nigerian Customs will begin the implementation of these particular fiscal policies. So I urge Nigerians to be a little bit patient, believing that some of these items that have already arrived at our shores will be cleared without the imposition of customs duty and taxes.”
Adeniyi expressed optimism that the suspension of duty and taxes on imported food items would help reduce food prices over time. “We believe that when this is implemented, it will help to bring down the prices of food items in the market. The Nigerian Customs is committed to the implementation of this particular fiscal policy as enunciated by the government,” he added.
Addressing the implications for local markets, Adeniyi assured that the policy would not undermine Nigerian farmers. “We are trying to address the interests of all stakeholders. Those crops that are going to enjoy these duty waivers and concessions are also being cultivated by Nigerian farmers,” he said.
The Comptroller-General also highlighted the government’s efforts to tackle hunger amidst ongoing protests. “The ongoing protest has been based on many themes and one of them is ending hunger. I’d like to let Nigerians know that there has been a lot going on to address these issues through a mixture of fiscal policies of the government and strategic interventions from ministries, departments, and agencies,” he explained.
Adeniyi recalled recent interventions, such as the distribution of strategic food items from the national grain reserves about a month ago. “We also recall that a number of the food items consumed in Nigeria are imported. A better part of the components are imported, and importation is not done on the shelf. It takes some time before they are done. So one of the things that the President has done is to cushion the cost inflation effect by suspending customs duty and taxes on imported food items for some time,” he concluded.
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