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From Ndubuisi Orji, Abuja
The Nigeria Customs Service (NCS) has announced that the federal government will forgo approximately N188.37 billion in potential revenue as a result of a six-month suspension of tariffs on certain staple food imports. This significant policy move aims to bolster food security in the country.
In a keynote address delivered at the Second Economic Confidential Lecture and the public presentation of the book “Effective Public Relations in Customs Management” on Tuesday in Abuja, the Comptroller General of Customs, Adewale Adeniyi, elaborated on the implications of the policy. Speaking on “Facilitating Food Trade through Efficient Customs Processes: Best Practices for Nigeria,” Adewale emphasised the federal government’s dedication to ensuring food security.
The recent suspension affects key staple foods, including rice, wheat, maize, and sorghum. This policy is intended to lower food prices and make these essential items more accessible to Nigerian citizens, but it comes at a considerable cost to government revenue.
Adeniyi provided detailed data to illustrate the financial impact of the policy. “The removal of tariffs and import duties on these staples for the next six months represents a substantial revenue sacrifice,” he said.
“From 2020 to 2023, imports of beans, maize, rice, and wheat totaled approximately N3.82 trillion. During this period, these commodities generated N191.72 billion in customs duties and N561.78 billion in levies.”
He further broke down the figures: “Wheat alone had an import value of N3.78 trillion, yielding N189.21 billion in duty and N561.68 billion in levy. Maize imports, valued at N34.30 billion, contributed N2.34 billion in duty. Despite import restrictions, rice imports were valued at N195.46 million, generating N19.55 million in duty and N97.02 million in levy. Beans imports, totaling N731.28 million, contributed N146.26 million in duty.”
These numbers underscore the significant revenue implications of the tariff suspension. Based on recent trends, it is estimated that the policy could result in a revenue loss of approximately N188.37 billion over the six-month period. This considerable forfeiture reflects the government’s prioritization of long-term food security over short-term fiscal gains.
Despite the financial sacrifice, Adewale affirmed the NCS’s commitment to the successful implementation of the policy. He announced plans to establish a special corridor to facilitate the efficient importation of the listed food items. “We anticipate a surge in food imports due to this policy, and the NCS is adapting its systems to ensure smooth implementation. Our objective is to support the government’s food security initiatives while maintaining the integrity of our trade processes.”
The new corridor will streamline the importation process, reducing clearance times and minimizing potential bottlenecks. Specially trained officers will manage this corridor to ensure both efficiency and compliance with regulations. Adewale assured that the NCS is fully committed to implementing the policy effectively, balancing trade facilitation with national security and economic growth.
