The Nigeria Customs Service (NCS) on Wednesday announced the conditions that businesses must meet to qualify for the government's new zero percent duty and VAT exemption on selected food imports.
According to a statement by the Service's spokesperson, Abdullahi Maiwada, companies wishing to import husked brown rice, grain sorghum, millet, maize, wheat and beans at zero duty must be incorporated in Nigeria, be in operation for at least five years and have a proven track record of filing annual returns, financial statements and compliance with tax obligations.
“To participate in the duty-free importation of basic food commodities, a company must be incorporated in Nigeria and have been in operation for at least five years. It must have filed annual returns and financial statements and paid taxes and statutory wage obligations for the past five years.
“Companies importing husked brown rice, grain sorghum or millet must own a milling plant with a capacity of at least 100 tons per day, which has been in operation for at least four years and has sufficient agricultural land for cultivation. Those importing corn, wheat or beans must be agricultural companies with sufficient agricultural land or feed mills or agricultural processing companies with a network of subcontracted producers for cultivation,” it said.
The policy, which came into effect on July 15 and will run until December 31, aims to reduce the cost of essential foodstuffs and improve food security across the country.
The NCS said the zero-tariff initiative is designed to alleviate the high costs of these staple foods, which previously faced import tariffs ranging from 5 percent to 30 percent.
By removing these levies, the government aims to cushion the impact of inflation on household budgets, particularly those of low-income families. However, the policy also includes measures to ensure compliance, such as requiring that at least 75 percent of imported items be sold through recognized commodity exchanges and that all transactions and storage be documented.
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He said the NCS, led by Comptroller General Bashir Adeniyi, has stressed that while this temporary measure addresses immediate food security challenges, it does not undermine long-term strategies to support local farmers and manufacturers.
He noted that companies that do not comply with the conditions outlined risk losing their exemptions and could be forced to pay the corresponding VAT, levies and import duties. In addition, all items exported in their original or processed form will be subject to these penalties.
The Federal Ministry of Finance will periodically provide the NCS with lists of approved importers and their quotas to facilitate compliance with the policy.
Background
Nigeria's Minister of Agriculture, Abubakar Kyari, recently revealed that the administration of President Bola Tinubu has decided to suspend import duties, tariffs and taxes on essential food items such as beans, wheat and husked brown rice.
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The country's food prices have risen sharply in recent years, a situation that worsened in 2023 when the president removed gasoline subsidies and allowed the naira to float.
This economic shift has led to a sharp rise in the cost of staple foods, including rice, wheat and bread, pushing many Nigerians further into poverty and increasing food insecurity amid high inflation.
The persistent rise in prices over the past year has led to the closure of several farms and businesses, and many agricultural producers have reduced their production due to insecurity and unpredictable weather conditions affecting rural areas.
In response, the president declared a state of emergency over food insecurity last year, with the aim of combating rising food prices. Despite these efforts, food price inflation has not abated.