Business a.m.
The Nigeria Customs Service (NCS) has warned that the federal government’s recent directive to suspend the six-month tariff could lead to a revenue loss of N188.37 billion.
Adewale Adeniyi, comptroller-general of the Nigeria Customs Service (NCS), disclosed the potential loss of N188.37 billion in customs revenue during a keynote address on “Facilitating food trade through Customs process: Best Practices for Nigeria” in Abuja.
Adeniyi provided a detailed analysis of the previous cost implications of the tariff on food imports, highlighting the financial loss the government could experience as a result of the suspension.
“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,” he stated.
Adeniyi underlined the significant implications of the tariff suspension for the NCS, which bears a unique responsibility to both promote trade facilitation and secure customs revenue at the nation’s borders.
He noted further that one of the most notable implications of the policy is the considerable financial sacrifice made by the government in an effort to improve access to affordable food for its citizens.
The NCS comptroller-general emphasised the magnitude of the revenue sacrifice, explaining that the suspension of tariffs on imported staples such as rice, wheat, maize, and sorghum represents a significant loss of potential revenue for the government.
He also provided an illustration of the situation, stating that from 2020 to 2023, imports of these food products reached a total value of N3.8 trillion.
CG Adeniyi revealed the revenue that these staple commodities produced for the government between 2020 to 2023, noting that wheat accounted for N3,784,288,508,393.00, resulting in N189,214,425,419.65 in customs duty and N561,678,613,107.90 in levies paid to the government.
Adeniyi revealed the value of imports and corresponding customs revenue generated by other staples, noting that
maize imports were valued at N34,301,422,247.00, generating N2,335,515,156.60 in duty. On the other hand, rice imports, despite import restrictions, were valued at N195,463,395.00, yielding N19,546,339.50 in duty and N97,016,143.80 in levies.
While acknowledging the monetary sacrifice represented by the tariff suspension, Adeniyi noted that the NCS recognises the critical importance of food security as a national priority.
According to him, to achieve this objective, the NCS had to swiftly adapt its systems and procedures to efficiently implement the tariff suspensions while also managing the increased volume of imports that would inevitably result from the policy.
