BREAKING: FG Set To Forfeit N188.37b To Suspension Of Food Tariff

FG is set to forfeit N188.37b over the suspension of the food tariff.

 

NewsOnline Nigeria reports that the Nigeria Customs Service (NCS) said the Federal Government’s directive for the suspension of a six-month food tariff can result in the forfeiture of N188.37 billion in revenue.

 

This Nigeria news platform understands that NCS Comptroller -General Adewale Adeniyi broke the news in his keynote address on “Facilitating food trade through Customs Process: Best Practices for Nigeria” in Abuja.

 

 

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After giving an analysis of the previous cost implications of the tariff on food, he said: “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.”

On the implication of the directive, he said as an agency responsible for trade facilitation and revenue collection at country’s borders, NCS finds itself at the intersection of these policies and their practical implementation.

 

Adeniyi said on of the most immediate and substantial implications is the revenue forfeiture that the government has committed to in order to make food more accessible and affordable for its citizens.

He explained 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.”

He recalled that 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.

He said during the period, these commodities generated N191,715,743,625.55 in customs duty and N561,775,629,251.70 in levies paid to government.

 

He further said 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.

The CG said maize imports were valued at N34,301,422,247.00, contributing N2,335,515,156.60 in duty.

 

He said 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.

 

He said beans imports were valued at N731,283,549.00, contributing N146,256,709.80 in duty.

Adeniyi noted the forfeiture is no small sum and represents the government’s commitment to
prioritizing food security over short-term revenue goals.