Customs Issues New Guidelines on Waiver: Food Importers Must Sell 75% in Approved Markets

In a bid to address the rising cost of food and its impact on inflation, the Federal Government has introduced a temporary duty waiver for food importers, with new guidelines issued by the Nigeria Customs Service (NCS). Importers utilizing this waiver are mandated to sell at least 75% of their products through approved commodities exchanges within Nigeria and are prohibited from exporting these goods.

This measure, which started on July 15 and will continue until December 31, aims to reduce food prices and is expected to indirectly provide a subsidy worth N188.4 billion to Nigerian consumers. The items eligible for the waiver include husked brown rice, grain sorghum, millet, maize, wheat, and beans, with the previous duty rates ranging from 5% to 30%.

The NCS guidelines emphasize transparency and accountability, requiring importers to maintain comprehensive records for compliance verification. Additionally, companies must meet specific operational criteria, including a minimum of five years of business activity and sufficient agricultural capacity.

This initiative comes in response to food inflation exceeding 40%, significantly contributing to the overall 34.19% inflation rate. The Federal Ministry of Finance will periodically review and adjust import quotas, ensuring adherence to the policy.

Comptroller-General of NCS, Adewale Adeniyi, highlighted the government’s commitment to addressing food security while supporting local agriculture and manufacturing. The Association of Master Bakers and Caterers of Nigeria (AMBCN) has welcomed the waiver, anticipating relief in bread and flour prices, which have been burdened by rising ingredient costs.