In a significant pushback against a recent policy directive by President Bola Tinubu, the Nigeria Customs Service (NCS) has raised concerns over the financial implications of suspending import duties on staple foods. The Customs Service warns that this move could cost the Federal Government a staggering N188.37 billion in lost revenue over the six-month implementation period.
Taking to their official social media X platform, Parallel Facts stated that the NCS made a public statement outlining the potential economic impact of this decision. The policy, announced by Tinubu in July, aims to alleviate the skyrocketing cost of food and address the severe hunger crisis gripping the nation by suspending import duties on essential food items.
However, Bashir Adeniyi, Comptroller-General (CG) of the NCS, expressed serious concerns at the second Economic Confidential Lecture and Book Presentation in Abuja. The event, themed ‘Leveraging Effective Communication for Revenue Generation and Economic Development,’ served as a platform for Adeniyi to disclose the potential fiscal fallout of the policy.
Adeniyi emphasized the enormity of the financial sacrifice, stating, “The removal of tariffs and import duties on key staples for the next six months represents a considerable sacrifice in terms of potential revenue. Based on recent trends, we estimate that the six-month tariff suspension could result in a revenue forfeiture of approximately N188.37 billion.”
While acknowledging the government’s commitment to prioritizing food security over short-term revenue goals, Adeniyi’s remarks underscore the tension between economic survival and fiscal responsibility. The suspension is intended to bring immediate relief to millions of Nigerians struggling with food scarcity and inflation. However, the Customs Service’s warning highlights the potential long-term financial strain on the nation’s coffers.
As Nigeria grapples with these economic challenges, the debate between immediate food security and long-term fiscal health remains at the forefront, raising critical questions about the sustainability of such policy decisions.
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