The administration of President Bola Tinubu is facing increasing pressure to reconsider its food import waiver policy introduced in July 2024. Sources within the Presidency have revealed that the government is being urged to abandon the waiver by private sector groups who claim that opening the market to food imports will harm local businesses and worsen unemployment in Nigeria.
The food import waiver, initially introduced as a temporary measure to address food inflation, was intended to suspend tariffs, duties, and taxes on key food items such as maize, husked brown rice, wheat, and cowpeas for 150 days. However, the private sector has raised concerns about the policy’s long-term effects on local production and job creation.
One source, speaking confidentially, said, “A lot of media outfits have been publishing about the failure of the government to implement the waiver on food imports. The real reason the government is slowing down is the need to protect local companies. Many local groups like the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have put pressure on the government not to proceed with the imports.”
The waiver was originally announced by the Minister of Agriculture and Food Security, Abubakar Kyari, on July 10, 2024. Kyari explained that the policy was aimed at addressing food inflation caused by both the affordability and availability of food. The plan also included the federal government’s commitment to importing 250,000 metric tons each of wheat and maize to support small-scale processors and millers across the country.
Since the announcement, however, the Nigerian Customs Service and the government have not provided details on how the policy would be implemented. According to reports, the Nigerian government is set to forgo approximately N188.37 billion in revenue over six months due to the duty waiver. However, the policy has faced criticism for not being implemented in time to address the ongoing food crisis.
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The National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, spoke about the policy’s pros and cons.
“The food import waiver idea is a double-edged sword. While it could reduce food prices and help alleviate hunger, it will also harm local producers who may struggle to compete with the prices of imported goods,” Kuti-George said.
He further explained that while the waiver might provide short-term relief, the government must focus on boosting local agricultural output to ensure long-term solutions.
“If the waiver is applied, it will serve as a stop-gap solution. The government can then work on increasing local production to bring down food costs in the long run.”
Others, like the Director of the Centre for Promotion of Private Enterprise, Dr. Muda Yusuf, agreed that the waiver was intended as a temporary measure to address food shortages during a period of high food prices.
“The policy was meant to bridge the gap before the harvest season, not to create permanent damage to local industries,” Yusuf said.
He also mentioned that the real challenge was the bureaucracy involved in implementing the policy, not opposition from local industries.
On the other hand, critics such as Dr. Femi Egbesola, the National President of the Association of Small Business Owners of Nigeria, have condemned the failure to implement the policy.
“It’s unfortunate that a presidential policy of national importance has not been implemented. This is a failure in coordination between government agencies, which is causing unnecessary hardship for the people,” Egbesola stated.
Economists have also weighed in on the potential impact of the waiver. Marcel Okeke, an economist and sustainability expert, voiced concerns about the negative effects on local producers.
“If the import waiver is not carefully managed, it could harm local industries by pricing them out of the market. The government must ensure that the policy does not undermine domestic production,” Okeke explained.
As the debate continues, Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, assured the public that the government is actively addressing concerns regarding the food import waiver.
In a recent interview, Edun said, “We are looking at ways to ensure the policy does not undermine the capacity of domestic food production.”