The Lagos Chamber of Commerce and Industry (LCCI) has expressed disappointment with the Nigerian government for taking too long to put into action a policy that allows food imports without taxes. This criticism comes after a large shipment of 32,000 tons of brown rice arrived in Lagos from Thailand. The rice was brought in by a logistics company called DUCAT and was meant to help reduce the rising prices of food, which had slightly decreased from 39.93% in November 2024 to 39.84% in December 2024.
The LCCI pointed out that this shipment arrived after the government’s 180-day period for duty-free imports had ended, which raises doubts about how effective and well-timed the policy really is. Chinyere Almona, the Director-General of the LCCI, stated that the late arrival of the rice shipment undermines the government’s goal of reducing food inflation. She emphasized that such policies need to be implemented promptly to effectively stabilize food prices.
The Chamber also noted that, despite the government’s efforts, food prices continue to rise, which is hurting the ability of families to buy basic necessities and affecting businesses. Almona highlighted that the increasing cost of food is diminishing the average Nigerian’s spending power and is a threat to the overall economy. While importing rice is seen as a necessary step to fill the gaps in local supply, the timing of when these policies are put into action is crucial.
The LCCI made it clear that their goal is not to harm local rice farmers but to ensure there is enough supply to meet the growing demand for food. They also called for the government to maintain consistent policies to help ease inflation and recommended that Nigeria should focus on improving agricultural productivity. This could be achieved by investing more in farming infrastructure, such as better storage facilities and providing farmers with fertilizers and grains.
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Almona stressed the importance of having policies that are not only well-planned but also executed without unnecessary delays. She also highlighted the need to address security issues, as insecurity is a major barrier to agricultural production. By tackling these security challenges, the country could improve its food supply.
The LCCI reiterated the need for fiscal reforms, stating that simply raising interest rates will not solve the problem of inflation. Instead, Nigeria needs comprehensive financial strategies to stabilize food prices in the long run.
The arrival of the rice shipment has reignited discussions about how the federal government is managing food inflation and the effectiveness of its policies, especially in light of criticisms from the organized private sector. Reports about the rice shipment were made public on January 10, following a report by Bloomberg.
