The Nigeria Customs Service has announced the implementation of zero duty on essential food imports effective from July 15 to December 31, 2024.

This was contained in a statement on Wednesday by the Nigeria Customs National Public Relations Officer, Abdullahi Maiwada, on behalf of the Comptroller-General of Customs, Bashir Adeniyi.

According to the statement, the basic food imports eligible for the zero percent duty rate are husked brown rice, grain sorghum, millet, maize, wheat and beans.

Mr Maiwada stated that the move followed the directive by President Bola Tinubu to implement the zero per cent duty rate and Value Added Tax exemption on selected basic food items.

Outlining the modalities for importers to partake in the zero-duty implementation of the policy, he said, “A company must be incorporated in Nigeria and have been operational for at least five years. It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.

“Companies importing husked borrowed rice, grain sorghum or millet, need to own a milking plant with a capacity of at least 100 tons per day, operated for at least four years, and have enough farmland for cultivation. Those importing maize, wheat or beans must be agricultural companies with sufficient farmland or feedmill/agro-processing companies with an out-grower network for cultivation.’’

He also noted that the policy required that at least 75 per cent of imported items be sold through recognised commodities exchanges, with transactions and storage recorded, advising companies to keep “comprehensive records of all related activities, which the government can request for compliance verification.”

Mr Maiwada however warned that companies who failed to meet its obligations under the imports authorisation, “will lose all waivers and must pay the applicable VAT, levies and import duties,” adding that the penalty also applied if the ‘‘company exports the imported items in their original or processed form outside Nigeria.”

The implementation of the presidential directive, the NCS spokesperson said, is “aimed at alleviating the hardship faced by Nigerians due to the high prices of essential food items,” noting that the policy was effective from July 15, 2024 and would remain in force until December 31, 2024.

He also stated that while the initiative was part of the government’s efforts to address food security challenges in the country, the temporary measure “does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.”