The Nigerian Customs Service (NCS) on Tuesday announced that the six-month import duties suspension will cost the service N188.37bn. This was disclosed by the Comptroller General of the NCS Wale Adeniyi in a keynote address on facilitating food trade through efficient customs practices in Abuja on Tuesday.....KINDLY READ THE FULL STORY HERE▶
Recall in a bid to address the food insecurity issue in Nigeria, the federal government announced a 180-day suspension of food items ranging from rice, wheat, and sorghum, among others.
Adeniyi said the recent government initiatives, while crucial for addressing the nation’s food security challenges will have significant implications for the Nigeria Customs Service.
He said, “As the agency responsible for trade facilitation and revenue collection at our borders, one of the most immediate and substantial implications is the revenue forfeature that the government has committed to making food more accessible and affordable for its citizens.
“The removal of tariffs and import duties on key staples like rice, wheat, maize, and sorghum for the next six months represents a considerable sacrifice in terms of potential revenue.
“Projecting based on recent trends; we estimate that the six-month tariff suspension could result in a revenue forfeiture of approximately N188.37bn. This is no small sum, and it represents the government’s commitment to prioritizing food security over short-term revenue goals”.
Speaking further, Adeniyi said from 2020 to 2023, the total import of these food items (beans, maize, rice, and wheat) was N3.82tn.
He added that during the three years under review, these commodities generated N191.72bn in customs duties and N561.78bn in levies paid to the government.
Further breakdown showed that wheat accounted for N3.78tn in import value, generating N189.21bn in duty and N561.68bn in levy.
Maize imports were valued at N34.30bn, contributing N2.34bn in duty.
Rice, despite import restrictions, was N195.46bn in import value, yielding N19.55bn in duty and N97m in levy, while beans imports were valued at N731.28m, generating N146.26m in duty.
Adeniyi said the service in preparing to meet these challenges head-on will implement a multi- faceted approach that encompasses policy alignment.
The approach Adeniyi said will include “Implementation of the tariff removal guidelines that will be issued by the Ministry of Finance in the coming days.
“Special Corridor to expedite the clearance of food items. In line with this, we are creating a special corridor to expedite the clearance of the listed food items rice, wheat, maize, and sorghum”.
This dedicated channel will streamline the importation process, reducing clearance times and potential bottlenecks.