In a major move, Nigeria is set to forfeit a significant sum of N188.37 billion in revenue due to a new government policy aimed at ensuring food security. The Nigeria Customs Service (NCS) recently announced that the federal government has decided to suspend tariffs on certain essential food imports for six months. This decision is part of a broader effort to make staple foods like rice, wheat, maize, and sorghum more affordable for Nigerian citizens.
During a recent event in Abuja, the Comptroller General of Customs, Adewale Adeniyi, addressed the implications of this policy. He stressed the importance of food security in Nigeria and explained that the government is willing to sacrifice short-term revenue for the long-term benefit of the people. The policy, while beneficial for reducing food prices, comes at a steep cost, with an estimated revenue loss of N188.37 billion over the next six months.
Adeniyi provided detailed financial data to illustrate the impact of the tariff suspension. From 2020 to 2023, imports of key staples like beans, maize, rice, and wheat brought in substantial revenue through customs duties and levies. For instance, wheat imports alone were valued at N3.78 trillion, generating N189.21 billion in duty and N561.68 billion in levies. Similarly, maize imports, valued at N34.30 billion, contributed N2.34 billion in duty.
Despite these significant contributions to national revenue, the government has decided to temporarily remove tariffs to make these essential foods more accessible to Nigerians. This move underscores the government’s commitment to prioritizing food security, even at the expense of considerable revenue losses.
To ensure the smooth implementation of this policy, the NCS plans to create a special corridor for the importation of the affected food items. This new system will streamline the import process, reduce delays, and ensure that the policy’s goals are met efficiently. Specially trained officers will oversee this corridor to maintain both efficiency and compliance with regulations.
