FG’s food import waiver plan fails to kick-off as 2024 rolls out

Five months after the federal government’s promised food import waiver on essential food items, Nigerians are yet to see the implementation of the policy.

In a letter by the Ministry of Finance dated July 2024, the federal government explained that the suspension of import duty on rice, wheat, maize and other essential food items, aimed to ameliorate the surging cost of living crisis in Africa’s most populous nation.

However, the free import window which was to span from July 15 to December 31 2024, has yet to take effect five months after and with only four days remaining for 2024 to come to an end, Nigerians wonder when it it will take effect.

Food items like rice, husked brown rice, grain sorghum, and beans, had duty rate levy ranging from 30 percent – 5 percent.

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“The importation of these items shall also be limited to investors with milling capacity and verifiable Backward Integration Program for some of the items listed,” the report as sighted by BusinessDay in July had noted.

Abubakar Kyari, minister of agriculture and food security, said the measure is a 150-day duty-free import window for food commodities, which involves the suspension of duties, tariffs, and taxes for the importation of maize, husked brown rice, wheat, and cowpeas.

On August 14, in another statement on the food waiver signed by Abdullahi Maiwada, national public relations officer, he noted that to participate in the zero import wavier, a company must be incorporated in Nigeria and must have been operational for at least five years.

He further explained that ministry of finance will periodically provide the Nigeria Custom Services (NCS) with a list of importers and their approved quotas to facilitate the importation of these basic food items within the framework of this policy.

However, on September 6, the NCS said the suspension of duties on imported food items would be implemented as soon as it receives the list of beneficiaries from the ministry of finance.

Yet, with just four days to the end of the year, Nigerians are yet to experience respite in food crisis and the zero import duty policy still stalls.

“A lot of the food crises we experienced in 2024 such as flooding, drought in northern states and climate impacts on food production, their impacts will be seen in 2025,” said Abiodun Olorundero, managaing partners at Prasinos Farms, in a telephone interview Friday.

“Therfore, something has to be done fast,” he emphasised.

According to him, efforts to double food production should be in place in 2025, lest the country sees its worst food crisis in decades.

Over 67 people have died by stampede during the festive season in a bid to scamper for food palliatives by charity bodies. This situation paints clearly the depth of Africa’s most populous nation alarming hunger war.

President Bola Tinubu’s bold but counter-productive reforms has worsened the country’s economy including devaluing the country’s naira currency and ending subsidies for electricity and fuel.

In November, inflation soared to 34.6 percent making it the highest value in 28 years, while food inflation peaked to 39.9 percent in the same period.

Experts say that until the zero import duty on the selected food items, which is supposed to bring relief, is implemented, millions of Nigerians are likely to remain hungry, and even more will be undernourished and subjected to various nutritional deficits in the coming year.

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The waiver was expected to target low-income households, however, as the year progresses, food inflation continues to strain households, with many consumers reporting that the prices of essential items remain high.

Currently, prices of a 50kg bag of rice — both local and foreign – costs an average of N120,000 and N106,000, respectively, higher than Nigeria’s minimum wage of N70,000.

The World Food Programme calls for urgent life-saving support in Nigeria as 33 million people are projected to face food insecurity in 2025.