THE Federal Government’s recent six-month tariff and import duties suspension on key staple foods – rice, wheat, maize, and sorghum could result in a revenue forfeiture of approximately N188.37 billion.
This is based on the Nigeria Customs Service (NCS) estimate that disclosed that from 2020 to 2023, the total import of these food items (beans, maize, rice, and wheat) gulped a staggering sum of N3,819,516,677,584.00.
Adewale Adeniyi, Comptroller-General, Nigeria Customs Service (NCS) disclosed this on Tuesday in a keynote address on “Facilitating food trade through efficient Customs process: Best practices for Nigeria,” delivered at the 2nd Economic Confidential lecture & book presentation in Abuja.
He pointed out that the removal of tariffs and import duties on key staples, rice, wheat, maize, and sorghum for the next six months represents a considerable sacrifice in terms of potential revenue.
“Let me put this into perspective with some data: From 2020 to 2023, the total import of these food items (beans, maize, rice, and wheat) was a staggering N3,819,516,677,584.00. During this period, these commodities generated N191,715,743,625.55 in customs duty and N561,775,629,251.70 in levies paid to government.
“To break this down further: Wheat alone accounted for N3,784,288,508,393.00 in import value, generating N189,214,425,419.65 in duty and N561,678,613,107.90 in levy.
Maize imports were valued at N34,301,422,247.00, contributing N2,335,515,156.60 in duty. Rice, despite import restrictions, saw N195,463,395.00 in import value, yielding N19,546,339.50 in duty and N97,016,143.80 in levy.
Beans imports were valued at N731,283,549.00, contributing N146,256,709.80 in duty.
“These figures highlight the significant revenue implications of the new policy. Projecting based on recent trends, we estimate that the six-month tariff suspension could result in a revenue forfeiture of approximately N188.37 billion,” the Comptroller-General of Nigeria Customs Service stated.
CGC Adeniyi highlighted that the government’s gesture is no small sum, and it represents the commitment to prioritising food security over short-term revenue goals.
However, he noted that the implications for the NCS extend beyond mere numbers as it entails operational adjustments, which the Service must swiftly adapt its systems and procedures to implement the tariff suspensions efficiently.
The removal of tariffs is likely to lead to a surge in food imports, and the NCS must prepare for this increased volume, ensuring that the ports and border stations can handle the influx without creating bottlenecks.
He stressed that it requires heightened vigilance because with the removal of tariffs on specific items, there is a risk of misclassification or misdeclaration of goods, as such the NCS must enhance its inspection and verification processes to prevent abuse of this policy.
CGC Adeniyi said, “Our goal is to effectively support the government’s food security initiatives while maintaining the integrity of our borders and trade processes.
“We are implementing a multifaceted approach that encompasses policy alignment, operational efficiency, technology adoption, and stakeholder engagement.
“First and foremost, we are fully committed to supporting and implementing the guidelines on tariff removal that will be issued by the Ministry of Finance in the coming days.
“Our teams are supporting the development of the guidelines and will swiftly integrate these guidelines into our systems and processes to ensure seamless implementation as soon as they are released.
“This proactive stance will minimize any potential delays or confusion in the clearance process for the affected food items.”
He further stated that the NCS, In line with this, is creating a special corridor to expedite the clearance of the listed food items – rice, wheat, maize, and sorghum.
This dedicated channel will streamline the importation process, reducing clearance times and potential bottlenecks, and the activities around this corridor will be managed by specially trained officers to ensure both efficiency and compliance with all necessary regulations.
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