The Nigeria Customs Service (NCS) has stated that the revenue loss over the six month approved duties free importation of food items could reach N188 billion.
This was announced by the Comptroller-General of NCS, Adewale Adeniyi, during his keynote address at the second Economic Confidential Lecture and Book Presentation in Abuja on Tuesday.
Adeniyi highlighted that the six-month suspension of tariffs is expected to lead to a revenue loss of about N188.37 billion, noting the government’s commitment to prioritizing food security over short-term revenue.
He emphasized that the removal of tariffs and import duties on these key staples over the next six months represents a significant sacrifice in terms of potential revenue.
The NCS estimates that between 2020 and 2023, the total import of these food items exceeded N3.8 trillion, generating over N191 billion in customs duties and more than N562 billion in various government levies.
Adeniyi assured that the NCS would ensure the smooth clearance of the specified food items, establish special corridors to expedite their processing, enhance the capacity of its personnel, and strengthen anti-smuggling efforts to prevent the entry of unauthorized food items.
The government’s effort at stabilising the economy
Vice-President Kashim Shettima, addressing the theme of the lecture, “Leveraging Effective Communication for Revenue Generation and Economic Development,” emphasized that President Bola Tinubu’s administration is implementing tough reforms to rescue Nigeria’s economy.
The Vice-President’s remarks were delivered by Dr. Tope Fasua, the Special Adviser to the President on Economic Affairs, Office of the Vice President.
He outlined the government’s accomplishments, including increasing foreign reserves to over $37 billion and achieving a stable transmission of 4,500 megawatts of electricity.
Additionally, he mentioned that the Federal Government has provided conditional cash transfers to more than one million families to ease their economic hardships and has settled $7 billion in inherited foreign obligations, among other initiatives.
Backstory
In July, the federal government through the Minister of Agriculture and Food Security, Sen. Abubakar Kyari disclosed the federal government’s plans to grant a 150-day window for duties-free importation of husked brown rice, maize and wheat as part of measures towards stabilising food prices and slow inflation.
- The federal government will also import 250,000 metric tonnes of wheat and maize to replenish the depleted strategic grain reserve.
- Additionally, the government plans to collaborate with stakeholders to establish a Guaranteed Minimum Price (GMP) for commodities, boost production—particularly among smallholder farmers during the 2024/2025 farming season—and promote the production of fortified food commodities, among other initiatives.
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