FG Succumbs, Suspends Import Duties, Taxes On Essential Food Items

BY EGUONO OGUONO

After months of anxious and exasperating wait for the speculated proposal on the removal of tariffs on essential imports like food and agricultural items by President Ahmed Bola Tinubu, Aso Rock yesterday reportedly signed the proposal, sending both relief and mixed feelings amongst citizens, across the landscape.

Irrespective of interpretations, especially on the planned hunger protest by Nigerians slated to begin tomorrow, August 1, 2024, official statement said the immediate suspension of duties and taxes on essential commodities is in line with the administration’s policy of renewed hope to cushion the effect of the inflationary trend that has prevailed over awhile. The suspension of  import duties and taxes on the listed items is expected to force down prices and make them more affordable for Nigerians.

Disclosing this Tuesday, Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, said that the government has always been concerned and remain committed to addressing the situation in a seamless manner with a view to reducing hunger in the land.

He explained that the prevailing inflationary trend has been a global reality including Nigeria, adding that the NCS has streamlined export processes to facilitate the efficient movement of local goods to international markets.

He said this initiative includes the introduction of customs guided trade tools like advanced ruling systems, authorized economic operators, and a time-release study designed to enhance trade, stimulate the economy, and create new opportunities.

The Customs boss further explained that these reforms will provide farmers, artisans, traders and entrepreneurs with a quick link to global markets, making it possible to engage in global trade in the real sense.

Speaking on the suspension of import duties on essential items the CGC  said, “We are committed to implementing this measure seamlessly to address the problem of hunger in our nation.”

He explained that in addition to above economic measures, the NCS is intensifying efforts to combat the proliferation of arms and dangerous weapons through Nigeria’s land, sea, and airports.

He warned that any disruption in the supply chain affects foreign investment, distorts trade, promotes instability, increases scarcity, and hinders revenue collections.

“In these challenging times, let us unite in resilience and cooperation. We extend our heartfelt gratitude to those who have embraced the path of peace and dialogue.’

This is even as he called for constructive engagement and cooperation from all Nigerians to overcome current challenges and build a brighter future.

Recall that earlier in July, the presidency debunked news that emanated from his office that President Bola Ahmed Tinubu has granted the said tax holiday on the essential commodities, designed as an urgent stimulus package to relax the ongoing hardship especially amongst the vulnerable bracket and low income earners, greatly affected by the soaring prices of food items and other essentials.

The President’s spokesman, Bayo Onanuga, who posted the policy approval on his official X handle and said the Minister of Agriculture already have the executive directive to act accordingly, later deleted the information, and explained that the memo which hasdalready been circulated wide and far across government departments, was still at proposal level; and regretted the error caused by the leakage.

According to Onanuga,  “The policy was mistakenly circulated. We are still deliberating internally from the agric ministry to other agencies on how best to proceed with the policy.”

The retracted policy draft hinted that the measures would be implemented over the next 150 days and involve relaxing duties, tariffs and taxes on the importation of certain food commodities.

Nigerians had hailed the proposed stimulus package as a necessary intervention even though it was coming late; before Aso Rock again stepped it down.

The Tinubu government is facing masses angst over its perceived insensitivity to the ongoing hardship, especially his failure to address endemic food shortages exacerbated by the lowering purchasing power of ordinary Nigerians due to galloping inflation.

While the greater majority of Nigerians are presently going hungry and facing health challenges induced by lack of food and ill health in an atmosphere where medications prices have scaled up over the reach of hundreds of millions, frustrated citizens have hung on with the minimum will of existence; while reports of suicides by those who could no longer cope have been on the rise.

The stimulus package memo which first circulated on Monday, July 8th, 2024  listed the suspension of tariffs on rice and other food commodities’ imports for 150 days to rein in biting hunger across family settings, nationwide.

Abubakar Kyari, the Minister of Agriculture and Food Security, had in a statement a day earlier,  said duties, tariffs and taxes on imported maize, husked brown rice, wheat and cowpeas, through land and sea borders have been suspended.

Kyari, in the said memo, said a 150-day duty-free import window for food commodities will be enforced as part of measures to be implemented over the next 180 days to ameliorate food inflation in Nigeria.

Kyari explained that the measures are part of the accelerated stabilisation and advancement plan recently presented to President Bola Tinubu by the economic management team (EMT) under the Presidential Economic Coordination Council (PECC), which the president constituted in March 2024.

The minister listed for elimination multiple taxes and levies, infrastructural challenges and “sheer profiteering by marketers and traders” have contributed to rising food prices.”

While some Nigerians reacting to the reported suspension of import duties on essential foods expressed relief, some others say they are still watching the situation, saying the announcement may simply be an official gimmick designed to fool people into believing that the government has become more responsive.