Nigeria Customs and Efforts to Boost Food Trade By Abdulsalam Mahmud

Nigeria Customs and Efforts to Boost Food Trade By Abdulsalam Mahmud

The agricultural potential of Nigeria has never been a subject of debate. Blessed with a friendly climate and fertile soil, Nigeria produces assorted varieties of both food and cash crops. The crisis of food insecurity, however, has plagued the nation in recent years.

Amid low agricultural production, inflation has further deprived citizens of the wherewithal to purchase food items. Hence, teeming Nigerians united to participate in the recent hunger protests across the nation.

President Bola Ahmed Tinubu, in a broadcast to assuage protesters, disclosed that his administration is taking some vital steps to divorce the hostile marriage between citizens and biting hunger.

At the second Economic Confidential Lecture recently, Bashir Adewale Adeniyi, Comptroller General of Customs, also highlighted positive actions taken by the Federal Government towards guaranteeing food security. But he first observed that though the government is assiduously making efforts to boost local food production, rising food import bills underscore significant challenges in achieving food security and stabilizing domestic prices.

“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 N3,819,516,677,584.00. During this period, these commodities generated N191,715,743,625.55 in customs duty and N561,775,629,251.70 in levies paid to government.

“To break this down further: 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. Maize imports were valued at N34,301,422,247.00, contributing N2,335,515,156.60 in duty.

“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. Beans imports were valued at N731,283,549.00, contributing N146,256,709.80 in duty. 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. Indeed, the removal of tariffs is likely to lead to a surge in food imports.

“Hence, we must prepare for this increased volume, ensuring that our ports and border stations can handle the influx without creating bottlenecks,” he said. Adeniyi, however, pointed out that the Nigeria Customs’ goal is to effectively support the government’s food security initiatives while maintaining the integrity of our borders and trade processes.

“We are implementing a multifaceted approach that encompasses policy alignment, operational efficiency, technology adoption, and stakeholder engagement,” he said. He announced that the NCS is creating a special corridor to expedite the clearance of imported rice, wheat, maize, and sorghum.

“This dedicated channel will streamline the importation process, reducing clearance times and potential bottlenecks. The activities around this corridor will be managed by specially trained officers to ensure both efficiency and compliance with all necessary regulations.”

CGC Adeniyi further disclosed that they have instituted a system for the pre-release of perishable items at the nation’s entry points upon receipt of notice ahead of arrival. “This measure is crucial for maintaining the quality and freshness of imported food items, reducing waste, and ensuring that these vital supplies reach consumers in optimal condition.”

He explained that the NCS is strengthening its partnerships with other relevant agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON). “This collaboration ensures that while we expedite food imports, we do not compromise on food safety and quality standards.

“We are working towards integrated inspections and information sharing to reduce duplication of efforts and speed up clearance times. Again, the Service has initiated various training programs for our officers, focusing on the new policies, advanced risk management techniques, and efficient handling of increased import volumes.

“This ensures our workforce is well-equipped to handle the evolving challenges in food trade facilitation while maintaining necessary controls,” he said. The Customs helmsman assured that the NCS remains adaptable and ready to fine-tune its approaches based on emerging realities.

He said their ultimate goal is to contribute effectively to the government’s efforts in ensuring food security and economic stability. He said: “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.

“Through our various initiatives, from the special corridor for food items to the AEO program, we have demonstrated that it is possible to enhance efficiency in trade facilitation while maintaining regulatory compliance and border integrity. This balance is crucial for sustainable economic growth.”

According to Adeniyi, the adoption of advanced analytics, real-time monitoring systems, and data-driven decision-making has significantly improved Customs operations. “Moving forward, we will continue to leverage technology to enhance our service delivery and adapt to evolving challenges.”

Indeed, the aforementioned strategies and policy actions implemented by the Adeniyi-led Nigeria Customs underscore the agency’s pivotal role in not only facilitating food trade, but also strengthening FG’s drive for food security.

These efforts illustrate that with determined focus, even the most deeply rooted challenges can be overcome, moving Nigeria’s aspirations for food security ever closer to reality.

Mahmud, Deputy Editor of PRNigeria, can be reached via: [email protected].