The administration of President Bola Tinubu is facing significant pressure to reconsider a policy that allows for the importation of certain food items without tariffs, which was announced in July 2024. This policy, known as a food import waiver, was intended to help alleviate food shortages and lower prices for consumers. However, many in the private sector are concerned that allowing more food imports could harm local businesses and lead to higher unemployment rates in Nigeria.
Sources close to the presidency have indicated that the private sector is worried that this policy could undermine their investments. They believe that if the country opens up to more food imports, it could hurt local producers who may struggle to compete with cheaper imported goods. Some private sector representatives have described the food import waiver as a “double-edged sword.” While it might lower prices for imported food, it could also negatively impact local production, making it harder for local farmers and manufacturers to sell their products.
One anonymous source from the presidency explained that many media outlets have been reporting on the government’s failure to implement this waiver effectively. However, the real reason for the delay is to protect local businesses. Organizations like the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have urged the government not to proceed with the importation of food, arguing that the focus should instead be on boosting local agricultural production.
On July 10, 2024, the Minister of Agriculture and Food Security, Abubakar Kyari, announced that the government would suspend duties, tariffs, and taxes on imports of specific food items such as maize, rice, wheat, and cowpeas for a period of 150 days. Kyari stated that this move was meant to help reduce food inflation and improve availability. He also mentioned that the government would import a substantial amount of wheat and maize to support small-scale processors and millers across the country.
Since this announcement, there has been little clarity on how the waiver would be implemented, and the Nigerian Customs Service (NCS) warned that the government might lose a significant amount of revenue—around N188.37 billion—due to this waiver over the following six months. Additionally, the Customs Service indicated that only companies incorporated in Nigeria and operational for at least five years would be eligible to participate in this waiver. Unfortunately, the initiative has yet to take off, contributing to worsening hunger in the country.
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The National Vice President of the Nigerian Association of Small-Scale Industrialists (NASSI), Segun Kuti-George, expressed that the food import waiver is indeed a double-edged sword. He acknowledged that while it could lower food prices and help alleviate hunger, it would also hurt local food producers who might not be able to compete with the lower prices of imported goods. Kuti-George emphasized the need to carefully consider the advantages and disadvantages of such policies before implementing them.
He pointed out that the import waiver is only a temporary solution and that the government should focus on increasing local agricultural output to make locally produced food more affordable. He criticized the government for not following through on its promises, stating that failing to implement the waiver would not be acceptable. If the waiver had been implemented, it could have significantly reduced food prices and increased sales for local businesses.
Dr. Muda Yusuf, the Director of the Centre for Promotion of Private Enterprise (CPPE), acknowledged the concerns raised by some members of the private sector about the potential negative impact on local production. However, he argued that bureaucratic issues, rather than private sector concerns, were the main reasons for the lack of implementation of the waiver. He reiterated that the waiver was intended as a temporary measure to address food scarcity and that it was never meant to be a permanent solution.
Dr. Femi Egbesola, the National President of the Association of Small Business Owners of Nigeria (ASBON), expressed disappointment that such an important policy had not been implemented. He noted that there had been blame-shifting among various government agencies, which has led to confusion and hardship for citizens. Egbesola emphasized that in situations of food shortages, governments should find ways to bridge the gap through imports while also supporting local agriculture in the long term.
Economist Marcel Okeke raised concerns about the implications of the waiver on the local economy. He warned that the policy could lead to corruption and inefficiency in its implementation. Okeke argued that if the government allows imports to flood the market, local producers might struggle to survive, as they would be unable to compete with cheaper imported goods. He also raised concerns about the quality of imported food, suggesting that it would be better to focus on growing food locally.
As the pressure on the government continues to build, Finance Minister Wale Edun stated that the government is exploring ways to address these concerns and ensure that the policy does not undermine local food production. However, attempts to get further comments from the finance ministry were unsuccessful, as officials declined to provide additional information.
