The federal government has approved the implementation of the fiscal measures to address the continued rise in inflation, especially on staples and other essential food items.
Consequently, the Nigeria Customs Service (NCS), has issued guidelines for the implementation of the policy measures which have been developed to prevent possible abuse, block potential loopholes, and provide safeguards against unintended consequences.
According to the guidelines released by the NCS, Specific items to be granted duty are VAT waivers are those where Nigeria has material gaps in local production, the duty waiver ranges from 5% on grain sorghum, millet, and maize to 20 per cent duty waiver on wheat and beans and 30 per cent waiver on husked brown rice.
It said the measures are for a temporary period, effective from July 15, 2024 to December 31, 2024, to ensure that efforts aimed at enhancing local production are not undermined.
The NCS noted that eligibility to participate as an importer is restricted to established businesses with a track record of good governance and tax compliance for a minimum of five years.
Only companies with sufficient farmland for cultivation, feed mills, or agro-processing companies with an out-grower network for cultivation are eligible to import items such as husked brown rice, grain sorghum, millet, wheat, maize or beans.
It said a minimum of 75 per cent of the imported items must be sold through recognised commodities exchanges, which will be monitored for compliance and sanctions, while export of the imported items in their original or processed form is prohibited.
The moderation in inflation rate just announced for July 2024 on the back of over 130 basis points decline in food inflation, which accounts for more than 50 per cent of the consumer price index basket, is expected to continue in the coming months as the new measures take hold.