Breaking: Tinubu Approves Implementation Of Import Duty Waiver On Food Items

President Bola Tinubu has approved the implementation of zero percent import duty and exemption of value-added tax (VAT) on basic food items.

The approval was confirmed in a letter forwarded by the ministry of finance to the Nigeria Customs Service (NCS).

In the letter, Wale Edun, the minister of finance, said the “measure which is geared towards ameliorating the high cost of food items in the Nigerian market shall be limited to the national supply gap to be determined by a committee set up by the Minister.”

Edun said importers applying for the duty waiver must have milling capacity and a verifiable backward integration programme (BIP).

BIP is the sourcing of raw materials locally to reduce dependence on foreign raw materials.

“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Programme (BIP) for some of the items,” the minister said.

Also, he said from time to time, during the implementation period, the ministry will furnish customs with the list of importers and their approved quotas to guide the importation of the basic food items.

Edun said customs must ensure strict compliance.

On Tuesday, Bashir Adeniyi, comptroller-general (CG) of NCS, said the federal government would lose about N188 billion in revenue due to the suspension of import duties on food commodities.

Adeniyi said the service would ensure adequate implementation by enlisting special corridors to clear imports of food items.