Federal Produce Inspection Service (Establishment) Act Bill

Bill · Trade

Policy date: 2024-02-29

A Bill establishes the Federal Produce Inspection Service to enforce standards for agricultural imports and exports. It targets exporters, importers, and related facilities to ensure quality compliance and modernize regulation.

What Is This Bill?

The Federal Produce Inspection Service (Establishment) Bill is Nigeria's legislative framework to reform the regulation of agricultural produce inspection and export standards. It repeals the outdated Produce (Enforcement of Export Standards) Act, Cap. P32 LFN, 2004 and establishes the Federal Produce Inspection Service (FPIS) a modernised, corporate body with legal independence, dedicated to enforcing grades and quality standards for agricultural commodities intended for import into or export from Nigeria. The Bill expands the mandate from export-only to include import inspection at ports of shipment.

Who Does It Target?

Agricultural produce exporters and importers operating at Nigerian ports of shipment Registered produce stores, warehouses, and agro-processing mills Shipping lines, terminal operators, and logistics providers handling agricultural commodities Federal and State government agencies involved in commodity trade regulation Domestic and international stakeholders in agricultural commodity value chains Host communities in produce-growing and port regions across Nigeria

What Does It Aim to Achieve?

Establish the Federal Produce Inspection Service as an independent corporate body with perpetual succession, capable of suing and holding property Enforce international grades and quality standards for Nigerian agricultural produce pre-shipment, boosting export credibility Expand mandate to cover import inspection at ports, ensuring imported agricultural commodities meet prescribed quality standards before entering the hinterland Generate foreign exchange revenue for the Federal Government through certified, compliant commodity exports Eliminate substandard, adulterated, and pest-infested produce from the export and import chains Strengthen penalties and enforcement mechanisms against wrongful grading, seal tampering, and produce adulteration Represent Nigeria in international Codex Alimentarius meetings where commodity standards are determined

Key Features

Establishment of the Service: The Bill formally establishes the Federal Produce Inspection Service as a body corporate, headquartered in Abuja, with offices in all 36 states and at every seaport and airport. The Service is independent in carrying out its statutory functions and replaces the former Produce Inspection Board. Governing Board: The Director-General (DG) serves as Chief Executive and Accounting Officer, appointed by the President on Ministerial recommendation. The DG must hold at least 15 years' experience in produce management and inspection. The DG serves a renewable four-year term and exercises control over Service employees under Board supervision. Extended Operational Mandate: Unlike the repealed Act (which covered export only), the FPIS Bill explicitly includes import inspection. At seaports and airports, the Service will conduct quality tests on imported agricultural commodities, board vessels to inspect ship holds for pests, and fumigate containers before loading. At state offices, the Service enforces export standards in bonded warehouses, land borders, and processing mills. Inspection, Seizure, and Enforcement Powers: Produce Officers are empowered to enter premises, stop vehicles and vessels, take samples, seize adulterated or substandard produce, impound containers, and prosecute offenders. The Service may counter-lock and seal buildings containing regulated produce. Officers must be in uniform during enforcement activities. Emergency Pest Control Orders: The Minister may issue Emergency Orders published in the Official Gazette in the event of serious pest outbreaks, including prohibition of produce movement or destruction of infested stock. Penalties for violations of emergency orders are capped at N500,000 or six months imprisonment, or both. The Board must be convened within 21 days of any such order. Offences and Penalties: The Bill creates a range of offences including: wrongful grading by produce officers (misconduct under Public Service Rules); unauthorised use or possession of Service seals (fine of not less than N150,000 or one year imprisonment, or both); and general export/import violations such as shipping substandard produce or tampering with sealed receptacles attracting fines of not less than N1,000,000 or one year imprisonment, or both. Financial Framework: The Produce (Enforcement of Export Standards) Act, Cap. P32 LFN, 2004 is expressly repealed. All existing rights, obligations, liabilities, pending proceedings, and forfeitures under the repealed Act are preserved and transferred to the new Service. Documents admissible under the old Act remain admissible.

Current Status

Rollout Stage: Passed third reading in the House of Representatives on February 29, 2024 awaiting Senate passage and Presidential assent Predecessor Body: Replaces the Produce (Enforcement of Export Standards) Act regime and the legacy Produce Inspection Board structure Institutional Gap: Nigeria's agricultural export inspection function has operated under a 2004-era legal framework that did not cover import inspection or create a body corporate this Bill closes that gap Codex Alimentarius Representation: The Service will formally represent Nigeria in international commodity standards-setting forums, signalling integration with global trade norms Zonal Structure: The Service will operate through geopolitical zone-based coordination, with zonal headquarters overseeing state offices and reporting to the Abuja head office

How to Access

Produce Exporters: Engage the Federal Produce Inspection Service for pre-shipment inspection, fumigation, and Certificate of Inspection to facilitate foreign exchange repatriation Importers: Present agricultural commodities at ports of shipment for Service quality testing before release to the hinterland; obtain fumigation certificates where required Agro-Processors/Warehouse Operators: Register facilities with the Service; submit to arrival-check tests and pest control inspections Investors in Commodity Trade: Note that export levies are enforced by the Service as a condition of export release ensure levy compliance before shipment Contact: Federal Ministry of Industry, Trade and Investment (Supervising Ministry) | National Assembly Bills: nass.gov.ng

Important Terms

Exportable Standard: A standard not lower than that prescribed for produce intended for export under the Export of Nigerian Produce Act or any other law Port of Shipment: Any place from which produce is exported by any means includes seaports, airports, land borders, and inland container depots Produce Officer: An officer of that rank in the Federal Produce Inspection Service, including persons appointed as inspector or examiner under the Act Certificate of Inspection: Document issued by the Service certifying quality, weight, fumigation, and packaging compliance required to facilitate foreign exchange repatriation on exported produce

Impact & Metrics

Nigeria is Africa's largest agricultural producer poor export inspection has historically led to produce rejections in international markets, costing the country billions in foreign exchange losses The expanded import inspection mandate addresses the gap left by the 2004 Act, which only covered exports imported pest-infested commodities from foreign ports will now be screened before reaching the hinterland Codex Alimentarius participation will align Nigerian agricultural export standards with global benchmarks, improving market access to the EU, USA, and Asia The N1,000,000 minimum fine for general export/import offences represents a significant increase from prior penalty levels under the repealed Act, intended to deter non-compliance

Official Resources

National Assembly Bill Tracker: nass.gov.ng/documents/bills Bill Document: Federal Produce Inspection Service (Establishment, Enforcement of Export Standards) Bill, 2022 — available via NASS Bill Tracker (HB reference) Supervising Ministry: Federal Ministry of Industry, Trade and Investment | fmiti.gov.ng Summary prepared using the Policy Summary Template | Source: FPIS Bill 2022 (NASS), Produce (Enforcement of Export Standards) Act Cap. P32 LFN 2004, House of Representatives Plenary Proceedings February 2024 | March 2026

Legal Framework

The Federal Produce Inspection Service (Establishment) Act derives authority from the Agricultural Produce Grading and Marking Act, the Standards Organisation of Nigeria Act, and the Nigerian Export Promotion Council Act. It aligns with the Nigeria Customs Service Act 2023 (on export certification at ports), the Codex Alimentarius international food standards, and WTO Agreement on Sanitary and Phytosanitary Measures (SPS Agreement) governing quality standards for agricultural exports.

Original source: National Assembly Bill Tracker: nass.gov.ng/documents/bills