Federal Government places tough Economic Sanctions on Food Importers, Encourages Local Producers

The Federal Government has moved to ban the importation of Cassava flour into the country in a bid to incentivize local producers of the commodity.

According to a circular titled “Fiscal Policy Measures 2012” signed by Batari Musa, the Director of Trade and Exchange of the Central Bank of Nigeria, the ban enters into effect from the 31^st of March.

Other incentives provided to Cassava producers and processers include a Corporate Tax rebate of 12%, too be enjoyed by Bakers who attain 40% cassava blend within a period of 18 months.

Also the government has waived all import duties associated with the importation of machinery or equipment to be utilized for the blending of cassava and composite flour.

In order to discourage importers of agricultural commodities and encourage local producers, the government also introduced the following measures:

From July 1^st,

• Wheat Flour shall attract levy of 65% and 35% duty rate;
• Wheat grain shall attract a 15% levy and 5% duty:
• Husked brown rice shall attract a 25% levy and 5% duty;
• Imported Polished rice shall attract a 40% levy and 5% duty

Import duties have already been waived on all machinery and equipment imported for the development of the agricultural and power sectors.

One Comment

1. 

   Oaukeme

   February 24, 2012 at 10:11 am

   this is no cause to smile as it is the consumers that will suffer the high cost of food. this policy is premature as the government has done nothing to support local production so there will be a shortage of these commodities as local production cannot meet demand and hence an unbearable price increase..