In a move aimed at alleviating the soaring cost of food, the Federal Government is set to suspend duties, tariffs, and taxes on essential food items imported through land and sea borders.
This measure is intended to combat the escalating food prices that have severely impacted the lives of Nigerians.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Centre for Promotion of Private Enterprises (CPPE) have both lauded the government’s decision, highlighting its potential positive impact on inflation.
A reliable source disclosed that the government plans to implement a 150-day duty-free import window for key food items, including maize, wheat, husked brown rice, and cowpeas.
This decision was driven by the alarming rise in food prices, which the National Bureau of Statistics recently reported at 40.66% food inflation.
“We have heard the cries of Nigerians over the prices of food items and condiments, with some now describing tomatoes as gold,” the source said. “Under the leadership of President Bola Tinubu, the Federal Government is fully aware of the hardship caused by the high cost of food items.”
Factors contributing to food inflation include agricultural production challenges in various parts of the country, leading to insufficient contributions from smallholder farmers.
Despite previous government interventions, such as releasing 42,000 metric tonnes of food from the National Strategic Food Reserve and purchasing additional rice, prices have continued to escalate.
The source explained, “While ongoing agricultural initiatives aim to boost production, the time lag between cultivation and harvest makes it inevitable for the government to implement stop-gap measures to provide immediate relief to Nigerians.”
In addition to the duty-free import window, the government will import 250,000 metric tonnes each of wheat and maize. These imports, in semi-processed states, will target small-scale processors and millers across the country.
Other measures include setting a Guaranteed Minimum Price (GMP) to stabilize the market, accelerating dry season farming, promoting agricultural mechanization, and collaborating with the Ministry of Water Resources and Sanitation to enhance irrigation facilities.
NACCIMA President Dele Oye commended the government’s decisive action, stating, “The 150-day duty-free import window for essential items is a commendable move that will stabilize food prices and provide much-needed relief to millions of Nigerians.”
Oye emphasized the importance of engaging stakeholders across the agricultural value chain to ensure Nigeria is not turned into a dumping ground for commodities.
“Protecting local investments and sustaining the growth of our agricultural sector must remain a priority,” he said.
Muda Yusuf, Director-General of the Centre for Promotion of Private Enterprise (CPPE), described food inflation as a critical challenge and supported the government’s decision to explore trade policy options.
“It is a step in the right direction, without prejudice to current efforts to boost domestic food production,” Yusuf noted.
Stakeholders in the agricultural sector have expressed mixed reactions. Andrew Mamedu, Country Director of ActionAid Nigeria, acknowledged the necessity of tariff removal but stressed the need to support small-scale farmers and address high transportation costs to achieve significant price reductions.
Engr. Daniel Ijeh, CEO of EA Daniels Farm, emphasized the importance of protecting local farmers. “The removal might benefit people in the short term, but local producers should be encouraged,” Ijeh stated.
Philip Jakpor also supported the tariff removal due to widespread hunger and other challenges but urged the government to ensure effective implementation.
The Federal Government’s comprehensive measures, including the immediate suspension of duties and tariffs on essential food items, aim to mitigate the impact of food inflation and secure long-term food security for Nigeria.
