The Federal Government has unveiled guidelines for the implementation of the “Zero Percent Duty Rate and Value Added Tax” exemption on certain basic food items.
The announcement is contained in a statement issued by the Spokesperson of the Nigeria Customs Service (NCS), Abdullahi Maiwada on Wednesday in Abuja.
Maiwada said that President Bola Tinubu approved the guidelines through Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
The News Agency of Nigeria (NAN) reports thaton July 8, the Minister of Agriculture and Food Security, Abubakar Kyari, announced the suspension of duties, tariffs, and taxes on certain imported food items.
The food items included maize, husked brown rice, wheat, and cowpeas.
According to Maiwada, the policy is effective from July 15, and will remain in place until December 31.
He listed the guidelines, which include that only companies incorporated in Nigeria and operational for at least five years were eligible to participate in the zero-duty importation of the staples.
“The company must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.
“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with capacity of at least 100 tonnes 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 feed mills/agro-processing companies with an out-grower network for cultivation,” he said.
The NCS official said that the Federal Ministry of Finance would periodically provide the service with a list of importers and their approved quotas to facilitate the importation of the staples within the policy’s framework.
He said that the policy required that at least 75 per cent of imported items be sold through recognised commodity exchanges, with all transactions and storage recorded.
“ Companies must keep comprehensive records of all related activities, which the government can request for compliance verification.
“If a company fails to meet its obligations under the import authorisation, it will lose all waivers and must pay the applicable VAT, levies, and import duties.
“This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria,” he said.
He, however, said that while the policy was a temporary measure aimed at addressing the current economic hardships, it does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.
According to the spokesperson, the previous duty rate and levy for husked rice was 30 per cent , beans 20 per cent, wheat 20 per cent, while millet, maize and grain sorghum were five per cent.
Borno Dry Ports To Be Ready In 6 Months – Zulum
Gov. Babagana Zulum of Borno says the state is committed to completing the construction of the Inland Dry Ports (IDP) located in the state in six months.
Zulum gave the assurances on Wednesday when he led the concessioners to the Nigerian Shippers’ Council (NSC) Headquarters in Lagos.
He assured NSC management of the resolve of the Borno government to expedite works toward establishing an inland dry port in Maiduguri.
According to him, the establishment of the inland dry port in Maiduguri will bring opportunities to the Federal Government and the people of Borno.
“The dry ports when completed will bring about employment generation, which will take away thousands of young children off the street, this is very important.
“The establishment of IDP will enhance transborder trade and it will also enhance relationship with our border countries.
“The IDP will enhance the economy of the nation and also increase the nation’s GDP.
“We are trying to divert our attention from mono-economy, which is oil, by investing in other opportunities. I think Nigeria will be great soon,” Zulum said.
He commended the federal government under the leadership of President Bola Tinubu for ensuring the rehabilitation of rail lines across the country.
Zulum also lauded Tinubu’s efforts in the rehabilitation of all the roads which enable thousands of trucks to come into Maiduguri daily.
“The establishment of the road system will fast-track the process of the IDP in the absence of rail,” he said.
He added that an efficient and effective road transportation system was already in place.
Speaking earlier, the NSC Executive Secretary, Mr Pius Akutah, noted that it was important for Borno to establish an IDP given its location bordering three West African countries – Chad, Niger, and Cameroon.
He said that Nigeria had established international trade with African countries under the African Continental Free Trade Zone Agreement AfCFTA.
The NSC boss said that this had allowed the country to open its borders to the whole of Africa into one market.
Akutah said that the federal government had emphasised the need for critical infrastructure in places like Maiduguri, which had boundaries with three countries within the area.
Nothing that he had seen the consistency of Zulum, Akutah said that he believed in the capacity of the governor to deliver the IDP project in six months.
He said that Zulum had already developed critical infrastructure of the transit park, “which made the IDPs project mind-blowing”.
“Now what needs to be done is for the two entities to look at the political will that the governor has brought to the table, to see how they can quickly agree among themselves.
“This is business and the initiative is not for the government to drive the day-to-day running of this inland dry port, it is a public-private dimension, and therefore, the private sector should drive it.
“So, the two entities should come together and fast-track the process of harmonising and agreeing among themselves.
“So, the governor can be able to achieve the speedy establishment of the IDP,” he said.
Akutah added that the President and the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, had compelled the council to ensure the quick establishment of IDPs across the country.
He said that the establishment of IDP in Maiduguri would discharge more than 10, 000 containers daily.
Akutah, who noted that the Borno dry port was at five per cent completion, added that the council would support the government in actualising the six months completion of the project.
