FG Initiates Duty-Free Import on Rice and Other Food Items, Expected Revenue Loss of N188.37bn
The Federal Government has announced a duty waiver for staple foods importation in a bid to reduce food inflation in Nigeria. As a result, the Nigeria Customs Service stated that the government may forfeit N188.37bn worth of revenue over the next six months.
Customs Comptroller-General Adewale Adeniyi highlighted the government’s commitment to prioritizing food security over immediate revenue goals during a press briefing in Abuja. The suspension of duties, tariffs, and taxes for the importation of maize, husked brown rice, wheat, and cowpeas is part of the government’s strategy to make food more accessible and affordable for citizens.
Adeniyi projected that the tariff suspension could result in a revenue loss of approximately N188.37bn, based on recent trends. The total import value of food items from 2020 to 2023 was N3.82tn, with significant revenue generated through customs duty and levies.
The initiatives designed for the purpose of addressing food security challenges, have implications for the customs service in terms of revenue collection. Adeniyi emphasized the need for efficient implementation of the government’s directive and adaptation of systems to handle the potential surge in food imports.
In a separate development, Adeniyi handed over the leadership of the World Customs Organisation West and Central Africa sub-region to Ahmadou Konate. Adeniyi expressed satisfaction with his tenure and advised Konate to prioritize adequate funding for customs administration in the region to enhance revenue generation.
Konate pledged to continue the work of his predecessors to achieve the goals of the World Customs Organisation, emphasizing the importance of collaboration and funding in customs administration.