The Nigeria Customs Services (NCS) has said the recent policy statement on removal of import duties on staple foods by President Bola Tinubu will cost the government up to N188.37 billion in revenue for the six months of implementation of the presidential directive.
President Tinubu had in July this year announced suspension of import duties on essential food items as part of the strategies to cut high food processes and stem the nationwide hunger in Nigeria.
The CG said the government has decided to forfeit the expected revenue from the implementation of the items to guarantee food security and price control for Nigerians. He said the government initiatives and efforts of the customs service 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.”
Controller General of Customs Adewale Adeniyi who made the claim also said his service is now waiting for implementation guidelines to be issued by the Federal Ministry of Finance which he said is being fine tuned before release.
CGC Adeniyi made the remarks today at the 2nd Economic Confidential lecture & Book Presentation in honour of the CGC titled “Impactful Public Relations in Customs Management”.
The customs boss said the government generated N3.819 trillion as revenue from the affected items between 2020 and 2023. During this period, the commodities generated N191,715,743,625.55 in customs duty and N561,775,629,251.70 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 prioritising food security over short-term revenue goals,” Adeniyi said yesterday.
He said the implications for the NCS extend beyond mere numbers, adding that the removal of tariffs is likely to lead to a surge in food imports. “We must prepare for this increased volume, ensuring that our ports and border stations can handle the influx without creating bottlenecks.”
Adeniyi said the period provides a unique opportunity to gather data on how tariff removals impact import volumes and food prices, adding that the customs will be meticulously tracking these metrics to inform future policy decisions.
He said the goal is to effectively support the government’s food security initiatives while maintaining the integrity of the nation’s borders and trade processes. “We are implementing a multi-faceted approach that encompasses policy alignment, operational efficiency, technology adoption, and stakeholder engagement,” he said, “We are committed to implementation of the President’s directive.”
He promised to deploy specially trained officers of the NCS to carry out the implementation of the policy for effective delivery in line with the agenda of the President.
NCS said it is also implementing advanced analytics tools to monitor import trends, pricing impacts, and potential abuse of the new policies in real-time. The CG said the move allows the service to provide valuable feedback to the government and make necessary adjustments quickly, ensuring the effectiveness of food trade policies.
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