The Federal Government halts duties on food imports and collaborates with states to boost farming

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By Teniola Amokeodo

Minister of Agriculture, Abubakar Kyari.

The Federal Government announced on Monday a 150-day duty-free import window for food commodities to address rising inflation that has worsened the economic conditions for many Nigerians. In addition, the government plans to collaborate with states to expand land cultivation nationwide.

As part of this initiative, the government has suspended duties, tariffs, and taxes on the importation of certain food items via land and sea borders. This move is expected to reduce the demand for foreign exchange by food importers. In 2023, Nigerians spent $2.13 billion on food imports. Central Bank of Nigeria data indicates that the country continues to import large quantities of food despite being known as Africa’s food basket.

The high food import bill is concerning given Nigeria’s large agricultural sector and ongoing efforts to boost local production. Challenges such as inadequate infrastructure, insecurity, and climate change have impeded progress. Experts argue that the duty-free import window highlights the government’s struggle to achieve the United Nations Sustainable Development Goal of eradicating hunger by 2030.

Previously, the government had ruled out food importation to combat high food prices and economic hardship. However, at a press conference in Abuja, Agriculture and Food Security Minister Abubakar Kyari announced the duty-free imports would include maize, husked brown rice, wheat, and cowpeas. This initiative is part of the Presidential Accelerated Stabilisation and Advancement Plan and aims to import 250,000 metric tonnes of wheat and 250,000 metric tonnes of maize. These semi-processed commodities will be supplied to small-scale processors and millers nationwide.

Kyari detailed measures to combat food inflation over the next 180 days, including a 150-day duty-free import window and suspending import duties, tariffs, and taxes. Imported food items will adhere to a Recommended Retail Price to ensure affordability.

Addressing concerns about the quality of imported food, Kyari reassured that safety standards would not be compromised. He emphasized that the government’s efforts aim to provide immediate relief while enhancing long-term food security through domestic production.

Over the past year, the cost of basic food items has skyrocketed, partly due to policy changes like the removal of petrol subsidies and floating the naira. This has led to significant price increases for essentials like rice and poultry products.

The minister acknowledged the severe impact of food inflation on Nigerians, highlighting efforts to stabilize prices and increase food availability through various initiatives. These include releasing food from the National Strategic Food Reserve and purchasing milled rice from local processors.

Kyari noted that infrastructural challenges, multiple taxes, and market profiteering contribute to food inflation. The government plans to collaborate with state governments to identify irrigable lands and increase cultivation.

Reactions from industry stakeholders were largely supportive. Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, praised the government’s comprehensive approach to stabilizing food prices. However, he emphasized the need to protect local agricultural investments.

Other experts, such as Dr. Ikenna Nwosu and Segun Kuti-George, welcomed the temporary relief but stressed the importance of boosting local agricultural production. Kuti-George pointed out that improving security, providing modern farming tools, and enhancing infrastructure are crucial for long-term food security.

Meanwhile, Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, warned that increased food imports might harm the local agricultural sector and urged the government to declare a state of emergency in the food sector to stimulate domestic production.

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