The Nigeria Customs Service (NCS) has confirmed that the new fiscal measures on food importation apply only to paddy rice, while the federal government maintains its restriction on rice importation through land borders.
The Comptroller-General of NCS, Bashir Adewale Adeniyi, made this clarification to the press during a routine inspection at the Apapa port on Friday.
He said nothing in the newly approved fiscal measures include the importation of rice, adding that the prohibition of rice still remains the same.
He, however, stated that some variety of rice is still being imported into the country for those who have access to foreign exchange to import it.
He said these small packages are not listed under the prohibition Act of the Customs Service.
“There is nothing in this fiscal measures that state that rice will be brought in through the border. Nothing has changed in the importation of rice apart from the fact that brown rice or rice paddy will be allowed duty-free.
“That is the only amendment to the fiscal policy. The extant policy on rice still remain the same, importation through the land border is still restricted.
“Of course, it’s the already removed from the items that could not access forex so those who have the money can still bring it.
“ You know that periodically, we still have rice imported in the port; some of them in smaller packages. Some of them in small packages. Those are not under import prohibition act yet,” Adeniyi said.
Backstory
Following the announcement of the federation on the temporal suspension of the import duties on selected food items into the country, the Nigeria Customs issued certain guidelines for those seeking to participate in the importation of food items.
The food items include husked brown rice, grain sorghum, millet, maize, wheat, and beans, with the intent to crash food prices in the country.
According to the spokesperson of customs, the policy takes effect from July 15 and will remain in force until December 31.
“The company must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.
“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with capacity of at least 100 tonnes per day, operated for at least four years, and have enough farmland for cultivation.”
“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation,” the spokesperson said.
What you should know
Nigeria is currently facing the highest cost of living crisis in decades, with food inflation soaring almost 39%, according to the National Bureau of Statistics.
The surge In staple food prices has sparked social unrest, leading many young Nigerians to protest against the high cost of living.
In response, the federal government ordered temporal suspension of import duties on selected food items to cushion the effect of these high cost of living.
The Ministry of Agriculture and Food Security approved a 150-day duty/tariff-free window for the importation of specific staple foods into the country to cushion the supply deficit and reduce food prices.
Meanwhile, the government said the temporal importation of these food items will not derail activities geared towards improving local food production.