The Nigerian government has introduced a policy to address the rising cost of essential food items by implementing a Zero Percent Duty Rate and Value Added Tax (VAT) exemption on selected basic food products. This policy, effective from July 15, 2024, to December 31, 2024, is designed to ease the financial burden on Nigerians by making these commodities more affordable and accessible.

Approved by President Bola Ahmed Tinubu and announced through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, the policy is part of a broader effort to ensure food security across the country. The government aims to make essential foodstuffs more affordable without compromising the protection of local farmers and manufacturers, maintaining a balance between immediate relief and long-term agricultural development.

To participate in this zero-duty importation program, companies must meet specific criteria. These include being operational in Nigeria for at least five years, filing annual returns and financial statements, and paying taxes and statutory payroll obligations. Companies importing items such as husked brown rice, grain sorghum, or millet must also operate milling plants with significant capacity and possess sufficient farmland for cultivation.

The policy covers several basic food items, including husked brown rice, grain sorghum, millet, maize, wheat, and beans, all of which will now be subject to a zero percent duty rate, down from previous rates ranging from 5% to 30%. The Federal Ministry of Finance will periodically update the Nigeria Customs Service (NCS) with a list of approved importers and their quotas to ensure smooth implementation. The policy also requires that at least 75% of imported items be sold through recognised commodities exchanges, with all transactions and storage recorded to maintain transparency.

Companies that fail to comply with the policy or attempt to export imported items will face penalties, including the loss of all waivers and the imposition of applicable taxes and duties. The Nigeria Customs Service, under the leadership of Comptroller General of Customs Bashir Adewale Adeniyi, has pledged full support for this initiative and urged all stakeholders to cooperate fully in its implementation.

This policy is expected to bring much-needed relief to Nigerian consumers, helping to mitigate the impact of rising food prices while ensuring that the long-term goals of agricultural development and local production are not undermined. The government remains committed to enhancing food security and promoting economic stability in the country.