The Traffic

Food Importers Must Sell 75% of Items at Approved Markets, Says Customs

Haruna Yakubu Haruna 

The Nigeria Customs Service (NCS) has released guidelines for food importers taking advantage of the Federal Government's duty waiver, which aims to boost food availability and affordability. Importers must sell at least 75% of the items at approved markets and are prohibited from exporting the imported goods.

The waiver, which began on July 15 and will end on December 31, applies to basic food items such as rice, sorghum, millet, maize, wheat, and beans. The NCS estimates that the six-month tariff waiver will indirectly transfer N188.4 billion to Nigerians as food subsidy.

To participate in the zero-duty importation, companies must be incorporated in Nigeria, have been operational for at least five years, and meet specific requirements such as owning a milling plant or farmland. The guidelines also provide evaluation mechanisms and sanctions for defaulters.

The Federal Ministry of Finance will periodically provide the NCS with a list of importers and their approved quotas. If a company fails to meet its obligations, it will lose all waivers and must pay applicable VAT, levies, and import duties.

The Comptroller-General of NCS, Adewale Adeniyi, emphasized that the initiative is part of the government's efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.

The Association of Master Bakers and Caterers of Nigeria (AMBCN) expressed optimism that the tariff suspension would help reduce the prices of bread and other items, commending the government's initiative to address the challenges faced by the baking industry.