FG suspends food imports duty, partners states on farming

A 150-day duty-free import window for food commodities was announced by the Federal Government on Monday as part of its increased efforts to combat increasing inflation, which has left many Nigerians poor.

Additionally, the government announced its intention to work with the states to increase land cultivation nationwide.

As a result, the government stopped imposing taxes, levies, and tariffs on the import of specific food items across land and maritime boundaries.

The most recent directive is anticipated, among other things, to lower food importers' demand for foreign exchange. Nigerians imported food products worth $2.13 billion from outside in 2023.

Despite being referred to as the "food basket of Africa," Nigeria exported a significant amount of food from other nations, according to the Central Bank of Nigeria's quarterly figures.

The administration is concerned about the high cost of food imports. The nation has a sizable agricultural industry, and initiatives have been made to increase domestic output in order to lessen reliance on food imports. However, issues including poor infrastructure, insecurity, and climate change have made it more difficult for the industry to advance.

However, experts argue that the most recent decree permitting free food imports is a glaring example of how the Nigerian government has not yet set the country up to achieve the Sustainable Development Goals of the United Nations, which call for the eradication of famine by 2030.

As part of its earlier plans to address the high cost of food and the nation's economic difficulties, the administration had ruled out importing food.

Abubakar Kyari, the Minister of Agriculture and Food Security, announced during a news conference in Abuja that certain commodities, such as cowpeas, wheat, husked brown rice, and maize, would be eligible for 150 days of duty-free importation.

The Presidential Accelerated Stabilisation and Advancement Plan plan would allow the Federal Government to import 250,000 metric tonnes of maize and 250,000 metric tonnes of wheat.

It clarified that the country's small-scale processors and millers would get supply of the imported food commodities in their semi-processed stage.

"To alleviate food inflation in the nation, which is aggravated by availability and affordability, the government has taken a raft of measures to be implemented over the next 180 days," Kyari stated.

"A suspension of duties, tariffs, and taxes for the importation of certain food commodities (through land and sea borders), and a 150-day duty-free import window for food commodities." These goods consist of cowpeas, wheat, husked brown rice, and maize. A Recommended Retail Price shall apply to imported food items under this system.

"I understand that, given the current concerns regarding the genetic makeup of food, some law-abiding residents may be worried about the quality of the proposed imports. I'm happy to restate that the government's stance represents requirements that wouldn't jeopardise the various food items' safety for ingestion.

The minister announced that the "federal government will import 250,000MT of wheat and 250,000MT of maize in addition to the importation by the private sector." The country's small-scale processors and millers will be supplied with the semi-processed imported food commodities.

According to Kyari, President Bola Tinubu came up with the advancement plan to give Nigerians access to food security and economic stability.

He said that "we have all witnessed to the escalating cost of food items in all parts of the country" during the last few months. Almost no food item anymore has a price that is not higher than what a large number of Nigerians can pay.

According to the ministry, the affordability crisis in our food security system had been indexed by the data from the National Bureau of Statistics which by the last count, had put food inflation at 40.66 per cent.
Since the president said that petrol subsidies would no longer be provided and that the naira would be floating in 2023 to allow market forces to determine the value of the country's currency, Nigerians have had to contend with exorbitant food prices.

The policies caused the cost of staple foods to rise; in a year, 50 kg of rice went from roughly N20,000 to over N70,000.

In a similar vein, many people can no longer afford basic proteins like eggs due to the increased cost of chicken goods. Depending on its size, an egg that sold for N100 last year may now fetch N200 or more.

Some farm owners have had to close their businesses due to the year-long increase in the cost of goods and services, whereas many farmers (both crops and livestock) have already cut down on their production amidst inflationary pressure, insecurity and extreme weather conditions ravaging rural communities.
"We have heard the protests from Nigeria on the cost of food and condiments; some are now calling tomatoes "gold" and offering a range of recipes to make soups and other dishes using some of the astronomically priced food items.

"What were once considered commonplace goods like potatoes, yams, and plantains now fetch exorbitant prices, and Nigerians have every right to question how and why things are the way they are.

"Members of the Federal Executive Council and all other MDA personnel are fully aware of the difficulty caused by the high cost of food products in our nation as a government led by President Tinubu. Without a doubt, food inflation is a direct consequence of several factors,” Kyari stated.

He said agricultural production activities had been hampered in some parts of the country by several factors resulting in the inability of smallholder farmers to contribute optimally to the country’s food basket.
He claimed that this had given the food crisis a new angle, one that went beyond affordability to include the availability of enough food supplies.

As you may remember, the Federal Government made a number of initiatives early in the year to increase food availability and lower its prices. Among these initiatives are the 58,500MT purchase of milled rice from the Rice Processors Association of Nigeria, the release of 42,000MT of various food commodities from the National Strategic Food Reserve, and an additional 30,000MT of rice.

Unfortunately, costs haven't stopped rising, and food products are sometimes running out these days. The government cannot stand by and let this continue. We must address the approaching availability dilemma, he said, even though state governments and the Federal Ministry of Agriculture and Food Security have continuing agricultural programmes, programmes, and projects of their own.

"The government will inevitably have to implement stopgap measures that would provide Nigerians with much-needed relief as long as it continues to support agricultural output on a sustainable and profitable basis for farmers.

For example, harvesting in 2024 will take place between October and November for wet season farming. While the actions are intended to reduce the immediate food shortages, we will strengthen domestic production capabilities to enhance long-term food security,” the minister added.

Kyari pointed out that the causative factors in the country’s food inflation figures include infrastructural challenges, multiple taxes and levies, and the sheer profiteering by marketers and traders.
The minister continued by saying that the federal government would work with state governments to find irrigable land and expand the area under cultivation.

The government also promised to "strengthen and accelerate dry season farming across the country, sustain support to smallholder farmers in the ongoing wet season farming through existing government initiatives" in order to increase output for the 2024–2025 farming cycle.

Start an aggressive programme of agricultural mechanisation and development to increase productivity, decrease labor-intensive tasks, lower production costs, and increase the amount of land under cultivation. Closely cooperate with the Federal Ministry of Water Resources and Sanitation to identify irrigable lands and increase the amount of land under cultivation.

The creation of a strategic initiative aimed at involving women and youth throughout the federation in the immediate greenhouse growing of horticultural commodities, such peppers and tomatoes, in order to boost output, stabilise prices, and alleviate food shortages.

"Encouraging other Para-Military establishments to put secured available arable lands to cultivation, while fast-tracking ongoing engagements with the Nigerian Military to cultivate arable lands under the Defence Farms Scheme."

OPS respond

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture's National President, Dele Oye, responded by praising the Federal Government for its decision to halt import duties on food.

He declared: "We applaud the Federal Government's courageous move to halt import taxes, levies, and duties on essential food supplies. The announcement of this plan by Honourable Minister Abubakar Kyari is a major step in the right direction towards easing the extreme food inflation that Nigerian households are currently experiencing.

The implementation of a 150-day duty-free import window for key commodities including cowpeas, wheat, husked brown rice, and maize is a praiseworthy measure that is expected to stabilise food prices an