NCS ’ll support, implement guidelines on tariff removal – CG Adeniyi

The Nigeria Customs Service (NCS) has said that total import of beans, maize, rice, and wheat from 2020 to 2023, gulped a whooping sum of N3,819,516,677,584.00.

Comptroller-General NCS Bashir Adewale Adeniyi disclosed this 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.

It is estimated that recent six-month tariffs and import duties suspension on key staple foods – rice, wheat, maize, and sorghum by the federal government could result in revenue loss of N188.37 billion.

“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 the 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 prioritizing food security over short-term revenue goals.

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.

“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,” the NCS CG said.

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