About 263,015 tonnes of imported maize and husk wheat valued at N96.3 billion ($58.36 million) are close to their respective port of destinations in Nigeria.

Findings indicated the imports were those approved by the Federal Government as data from the Nigeria Ports Authority (NPA)’s shipping position revealed that six vessels would soon berth with the grain at Lagos and Calabar ports.

The Federal Government had set December 2024 as deadline for the importation of these categories of the grain. Expected at the Lagos port terminals with 237,115 tonnes of wheat valued at N88.42 billion ($53.52 million) are Anika with 53,400 tonnes;

Bulk Endurance, 45,000 tonnes; Maina, 25,674 tonnes; Capt. Eugene, 30,000 tonnes; Desert Harrier, 54,041 tonnes and Supra Duke, 29,000 tonnes. Also, Calabar Port will take delivery of 15, 100 tonnes from MV Dirina this month.

It was revealed that local price of the grain is 452,400 per tonne, while imported price stands at $226 per tonne or 372,900, making the local price higher by 17.6 per cent as at September 2024.

Also, Queen Alesia with 25,900 tonnes of maize valued at N7.99 billion ($4.84 million) will berth at Lagos Port to tackle food shortages in the country. It was learnt that while the price of maize is 550,000 per tonnes in Nigerian market, global price is $187 or N299, 200, making the price to be lower by 46 per cent when compared to local price.

Recall that the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, had said that Federal Government had procured some imported staple foods like maize and wheat to tackle food shortages in the country.

The minister explained that the procured food items would soon arrive in Nigeria, noting that the importation measure was an interim measure so that it won’t affect local food production. He added: “In the meantime, there is a short-term measure to import food.

The government has ordered procured maize and wheat which is on its way. It is critical that we do not disrupt domestic production of food, we do not disrupt farming in Nigeria by flooding the market with imports that now put prices where farmers are now discouraged from engaging in production and millers are discouraged from engaging in food processing.

“As a result, the conversations are on to see what quantity we can bring in without disrupting the agricultural sector. In the short term; we are intervening through some imports and wet season procurement and delivery of the right import but in the long term, we must identify and put in place strategies to increase agriculture productivity.”

In August 2024, the Nigeria Customs Service (NCS) released import guidelines on the implementation of a zero percent duty rate and Value Added Tax (VAT), exemption on husked brown rice, grain sorghum or millet and other selected food items.

To participate in the zero-duty importation of basic food items, the service noted that a company must be incorporated in Nigeria and must have been operational for at least five years.

Further, it stressed that such a company must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.

It explained that companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tonnes per day, operated for at least four years and have must enough farmland for cultivation.

Also, NCS said that there would be penalty if the benefiary companies export the items in their original or processed form outside Nigeria.

The Public Relations Officer of the service, Abdulahi Maiwada, said that those importing maize, wheat or beans must be agricultural companies with sufficient farmland or feed mills/ agro-processing companies with an out-grower network for cultivation.

Maiwada added that the guidelines were released by the Minister of Finance and Coordinating Minister of the Economy, noting that the policy was effective from 15th July 2024 and would remain in force until 31st December 2024.

Maiwada said that the measure aimed to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens, stressing that initiative was part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.

However, he stressed that it was important to emphasise that while the temporary measure was intended to address current hardships, it does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.

According to Maiwada, “the Federal Ministry of Finance will periodically provide the NCS with a list of importers and their approved quotas to facilitate the importation of these basic food items within the framework of this policy.

The policy requires that at least 75 per cent of imported items be sold through recognised commodities exchanges, with all transactions and storage recorded. companies must keep comprehensive records of all related activities, which the government can request for compliance verification.

If a company fails to meet its obligations under the import authorisation, it will lose all waivers and must pay the applicable VAT, levies and import duties.