In a bid to curb soaring inflation and alleviate the financial strain on its citizens, the Federal Government of Nigeria announced a 150-day duty-free period for importing food commodities starting Monday. This measure aims to ease the importation process and reduce the heavy reliance on foreign currency for food purchases.
The government will suspend duties, tariffs, and taxes on specific food imports through both land and sea borders. This initiative is expected to lower the demand for foreign exchange, a significant factor given that Nigeria spent $2.13 billion on food imports in 2023. Despite being known as the food basket of Africa, Nigeria continues to import large quantities of food, reflecting challenges in its agricultural sector.
Factors such as inadequate infrastructure, insecurity, and climate change have hindered local food production. The new import policy, however, raises questions about Nigeria’s commitment to achieving the United Nations Sustainable Development Goal of eradicating hunger by 2030.
Agriculture and Food Security Minister, Abubakar Kyari, outlined the details during a press conference in Abuja. He specified that the 150-day duty-free import window will apply to commodities such as maize, husked brown rice, wheat, and cowpeas. The government plans to import 250,000 metric tonnes each of wheat and maize, targeting small-scale processors and millers across the country.
Kyari emphasized the government’s commitment to ensuring the safety of imported food items amidst concerns about genetic modification. He also highlighted the broader Presidential Accelerated Stabilisation and Advancement Plan aimed at bolstering food security and economic stability in Nigeria.
The minister acknowledged the severe impact of inflation on food prices, exacerbated by recent economic policies including the removal of petrol subsidies and the floating of the naira. These actions have driven up the cost of basic food items, with the price of a 50kg bag of rice skyrocketing from about N20,000 to over N70,000 within a year.
Poultry products have also seen significant price hikes, making basic protein sources like eggs unaffordable for many Nigerians. The inflationary pressure has forced some farm owners to shut down operations, while others have cut back on production due to rising costs, insecurity, and extreme weather conditions.
In response to the food affordability crisis, the government previously released 42,000 metric tonnes of assorted food commodities from the National Strategic Food Reserve and purchased additional quantities of milled rice. Despite these efforts, food prices have continued to escalate, prompting the government to introduce the current duty-free import initiative.
The Federal Government remains committed to supporting agricultural production but recognizes the need for immediate measures to provide relief to Nigerians struggling with high food prices. The new import policy is seen as a crucial step towards stabilizing the market and ensuring food availability during the ongoing economic challenges.
