Tinubu food import: Customs to forfeit N188.4bn revenue

…Awaits Guidelines from Finance Ministry 

Emma Ujah, Abuja Bureau Chief 

The Nigeria Customs Service (NCS) is to forfeit an estimated N188.37 billion in the six months within which the Tariff-free food import of President Bola Tinubu would be implemented. 

The Comptroller-General (C-G) of the NCS, Mr. Wale Adeniyi, disclosed this at the   Public Lecture and Book Presentation of Economic Confidential in Abuja, this afternoon.

The book co-authored by Kabir Abdulsalam and Maryam Na’Allah is titled, Impactful Public Relations in Customs Management: The CG Wale Adeniyi Example.

In his Keynote Address, the C-G described food security as a national priority that required a well-coordinated approach of all stakeholders. 

He said that special corridors would be created to facilitate the clearance of the affected food items- including rice, maize, wheat and sorghum.

His words, “In a bold move to address the immediate challenge of high food prices, the President has directed the removal of tariffs and other import duties on key staples – rice, wheat, maize, and sorghum – for the next 6 months. This measure aims to drive down food prices and improve accessibility for the average Nigerian. As the Comptroller-General of Customs, I can assure you that we are fully committed to implementing this directive effectively.

“The recent government initiatives, while crucial for addressing our nation’s food security challenges, have significant implications for the Nigeria Customs Service.

“As the agency responsible for trade facilitation and revenue collection at our borders, we find ourselves at the intersection of these policies and their practical implementation. 

“One 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.

“The removal of tariffs and import duties on key staples – rice, wheat, maize, and sorghum – for the next 6 months represents a considerable sacrifice in terms of potential revenue. 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 trillion. During this period, these commodities generated N191.715 billion in customs duty and N561.775 billion in levies paid to the government. 

“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. 

“This is no small sum, and it represents the government’s commitment to prioritizing food security over short-term revenue goals.” 

Implications for Customs

The C-G disclosed that to ensure a successful implementation of the policy, his team would undertake Operational Adjustments by swiftly adapting its systems and procedures to implement the tariff suspensions efficiently. 

The removal of tariffs, he said, would likely lead to a surge in food import. Therefore, the service needed to prepare for increased volume, ensuring that ports and border stations could handle the influx without creating bottlenecks. 

However, Mr. Adewale said there would heightened Vigilance to avoid misclassification or misdeclaration of goods, adding, “We must enhance our inspection and verification processes to prevent abuse of this policy.”

Stakeholder Engagement

The NCS, he said, would engage importers, clearing agents, and other stakeholders with a view to clearly communicating the policy to them for it to be implemented seamlessly.

“We need to ensure that the benefits of these tariff suspensions are passed on to 

consumers in the form of lower food prices,” he said.

The Balancing Act

Appreciating the need to encourage local production of the affected items, the NCS boss promised to be mindful of not undertaking actions that would discourage domestic players in the sector.

His words, “While facilitating the import of these staples, we must also be mindful of supporting local production. Our processes should not inadvertently discourage domestic agricultural initiatives.

Guidelines from Finance Ministry

“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.”

Special Corridor to expedite the clearance

The C-G revealed that Special Corridors for the quick clearance of the food items were being created to avoid delay at ports and border stations.

“The activities around this corridor, he said, would be managed by specially trained officers to ensure both efficiency and compliance with all necessary regulations.”

Real-time Monitoring Systems
The NCS, Mr. Adewale said, has commenced implementing advanced analytics tools to monitor import trends, pricing impacts, and potential abuse of the new policies in real-time.

“This allows us to provide valuable feedback to the government and make necessary adjustments quickly, ensuring the effectiveness of food trade policies,” he said.

Food Security is a National Priority

He added, “The recent government initiatives and our efforts at the Nigeria Customs Service 

underscore that food security is not just an agricultural issue, but a national 

priority that requires coordinated efforts across all sectors. The NCS is committed to playing its crucial role in this endeavour.”

In his remarks, the Managing Director of Economic Confidencial, Alh. Yushau Shuaib described the CG as an accomplished Public Relations icon who brought his expertise to bear on NCS, with very impressive results in increased revenue generation and efficient trade facilitation, among others.

https://www.vanguardngr.com/2024/08/breaking-food-imports-customs-to-forfeit-n188-4bn-revenue/