The Nigerian Federal Government is planning to implement a temporary suspension of duties, tariffs, and taxes on essential food items imported through land and sea borders. This decision aims to address the increasing cost of food items, which has significantly impacted the livelihood of Nigerians.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Centre for Promotion of Private Enterprises (CPPE) have expressed support for this government initiative, highlighting its potential positive impact on inflation.
The report listed food items such as maize, wheat, husked brown rice, and cowpeas are expected to benefit from a 150-day duty-free importation window.
Acknowledging the substantial rise in food prices across the country, the government is responding to the concerns raised by the populace. It has been observed that food inflation, currently at 40.66% according to the National Bureau of Statistics, has led to an affordability crisis and increased the financial burden on citizens.
The government has recognized the multifaceted nature of the issue, attributing food inflation to various factors such as impediments to agricultural production in some regions, thereby affecting the contribution of smallholder farmers to the country's food supply. Despite previous interventions to enhance food availability and stabilize prices, the persistence of escalating prices and scarcity has necessitated further action.
In addition, the government has made efforts to address the long-term food security challenge by encouraging sustainable agricultural production. It has also established the Presidential Economic Coordination Council (PECC) and recently approved a N2 trillion package, with a focus on the agricultural sector, as part of an Accelerated Stabilization and Advancement Plan.
To mitigate food inflation and availability issues in the country, the government has outlined a comprehensive set of measures to be implemented over the next 180 days. These include the 150-day duty-free import window, suspension of duties, tariffs, and taxes for specified food commodities, and regulation of imported food commodities through a Recommended Retail Price (RRP).
This proactive approach demonstrates the government's commitment to addressing immediate food shortages while also working towards strengthening domestic production capabilities for long-term food security.