NIGERIA – The Federal Government of Nigeria has announced the commencement of a zero import duty policy on a selection of essential food items, a decision that was recently announced in response to the growing inflationary pressures within the country.
On July 10, 2024, the federal government announced the suspension of these charges, which apply to food staples imported through both land and sea borders.
The food items included in this policy are maize, husked brown rice, wheat, grain beans, and millet.
This policy, spearheaded by the Nigeria Customs Service (NCS) and backed by the Federal Ministry of Finance, is designed to make essential food commodities more affordable for the Nigerian populace.
The exemption of maize, wheat, and millet from import duties is particularly significant for the grains and cereals sector. These crops are staple foods in Nigeria, and their prices have a direct impact on the cost of living for millions of Nigerians.
According to a circular signed by NCS Deputy Comptroller-General C.K. Niagwan, issued on August 14, 2024, this policy will be effective from July 15, 2024, and is scheduled to remain in place until December 31, 2024.
The circular emphasized that this initiative received approval from President Bola Tinubu and aims to mitigate the impact of inflation on food prices in Nigeria.
The Minister of Finance, Wale Edun, stated in an official communication that the policy is “geared towards ameliorating the high cost of food items in the Nigerian market.”
He further noted that the waiver will be limited to the national supply gap, which will be determined by a specialized committee established by the Ministry of Finance.
This committee will assess the domestic production of these staples and determine the required volume of imports to stabilize market prices.
In recent months, Nigeria has faced rising food prices due to a combination of factors, including currency depreciation, increased fuel costs, and disruptions in domestic food production.
The zero import duty policy is expected to alleviate some of these pressures by allowing more affordable imports to enter the market.
Industry stakeholders have welcomed the policy, viewing it as a necessary intervention to stabilize the market.
However, some experts have raised concerns about the long-term impact on local farmers and the domestic agricultural sector. While the import waiver is expected to lower prices in the short term, there is apprehension that it might undermine local production if not carefully managed.
The government has assured that the policy will be temporary and closely monitored to ensure that it does not negatively impact local agriculture.
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