The Federal Government of Nigeria plans to suspend duties, tariffs, and taxes on essential food items imported through land and sea borders. This measure aims to reduce the soaring cost of food items, which has significantly impacted Nigerians’ cost of living. Key food items such as maize, wheat, husked brown rice, and cowpeas will benefit from a 150-day duty-free import window. This decision comes in response to escalating food prices and the resulting affordability crisis, as highlighted by recent data from the National Bureau of Statistics, which indicated a food inflation rate of 40.66%.
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the CPPE – Centre for the Promotion of Private Enterprise have praised the government’s decision. They believe the suspension of duties and tariffs will help mitigate the severe food inflation currently affecting Nigerian households. The NACCIMA President, Dele K. Oye, described the 150-day duty-free import window as a significant step towards stabilizing food prices and providing much-needed relief to millions of Nigerians.
A source within the government explained that the ongoing agricultural production challenges have hampered smallholder farmers’ contributions to the country’s food supply. To address this, the government plans to import 250,000 metric tons of wheat and maize to support small-scale processors and millers across the country. This measure aims to ensure the availability of food commodities while ongoing agricultural initiatives work to boost domestic production capabilities for long-term food security.
The Presidential Economic Coordination Council (PECC), formed in March 2024, has been working on an Accelerated Stabilization and Advancement Plan to tackle food inflation. The plan includes various measures such as engaging relevant stakeholders to set a Guaranteed Minimum Price for food commodities, accelerating dry season farming, and enhancing agricultural mechanization. These initiatives are designed to drive down production costs, boost productivity, and increase the availability of food items in the country.
Stakeholders have expressed mixed reactions to the government’s decision. While some, like ActionAid Nigeria’s Country Director Andrew Mamedu, believe the tariff removal is necessary due to the widespread hunger, others emphasize the need to protect local farmers. They argue that while the removal might benefit consumers in the short term, it is crucial to incentivize and support local agricultural production to ensure long-term food security and sustainability for Nigeria.