- To curb soaring food inflation
- Suspends duties, tariffs, taxes on basic food imports for 150 days
ONOME AMUGE IN LAGOS
The federal government of Nigeria says it is now set to embark on a sweeping food importation scheme, which includes a 150-day suspension of duties, tariffs, and taxes on basic food imports such as wheat, maize, husked brown rice, wheat, and cowpeas through both land and sea borders.
This large-scale initiative is aimed at curtailing the soaring food inflation in the country by making these essential food items more affordable and accessible to the population.
This policy, according to Abubakar Kyari, the minister of agriculture and food security, will be implemented over the next 180 days and aims to stabilise food prices in Africa’s most populous nation, where inflation in this sector has soared to a record high year-on-year, and revitalise a fragile economy that has faced significant challenges for nearly a decade.
The minister, while explaining the development in a recent press statement seen by Business a.m., stated: “Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP). (I am aware that some good citizens might be concerned about the quality of the would-be imported food commodities as it relates to the trending worries around the genetic composition of food.)
“I am glad to reiterate that the government’s position exemplifies standards that would not compromise the safety of the various food items for consumption”
Kyari also underscored the serious affordability crisis that currently plagues the country’s food security system, citing data from the National Bureau of Statistics which indicated that food inflation had reached an alarming rate of 40.66 percent by the most recent estimate.
“We have heard the cries of Nigeria over the prices of food items and condiments, with some now describing tomatoes as gold and proposing a variety of recipes to prepare soups and dishes with some of the overly priced food items. What in the past were regarded as common items such as yam, plantain, potato now command excessively high figures and Nigerians are right to wonder how and why things are the way they are.” he said.
According to Kyari, the ongoing food inflation crisis is primarily caused by a multitude of factors, which have cumulatively resulted in the inability of smallholder farmers to contribute optimally to the country’s food supply. This, he explained, has resulted in the new dimension of the food crisis, which is characterised by both an inability to afford food commodities and a dearth of available food commodities. These factors, including disruptions to agricultural production activities in certain areas, have created a complex and urgent challenge for the government to address in order to secure the nation’s food security.
As part of measures to address this issue, the minister announced that in addition to the private sector imports, the federal government will import an extra 250,000 metric tonnes of wheat and 250,000 metric tonnes of maize. He explained further that these food commodities, in their partially processed state, will be distributed to small-scale processors and millers across the country, aiming to boost domestic food production and increase availability of these commodities at the local level.
Minister Kyari informed that the federal government will collaborate with relevant stakeholders to establish a Guaranteed Minimum Price (GMP) for assorted food commodities, with the goal of mopping up surplus goods for restocking the National Strategic Food Reserve. In addition, the government plans to support the ramp-up of production for the 2024/2025 farming cycle while providing sustained assistance to smallholder farmers in the current wet season farming.
Kyari further disclosed that the federal government has introduced various initiatives to enhance food production, including the development of a strategic engagement for youth and women across the country to immediately establish greenhouse cultivation of horticultural crops such as tomatoes and peppers to increase production volume, stabilise prices, and address food shortages. He also mentioned that the government intends to accelerate ongoing engagements with the Nigerian military to swiftly cultivate arable lands under the Defence Farms Scheme, while encouraging other para-military establishments to cultivate any secure available arable lands.
In addition, the minister stated that the Renewed Hope National Livestock Transformation Implementation Committee will be established on Tuesday, 9th July 2024, with the primary objective of developing and implementing policies that prioritise livestock development while ensuring alignment with the National Livestock Transformation Plan. He added that the committee will focus on enhancing nutrition security through the promotion of fortified food commodities and providing necessary support to scale up the Home Garden initiative by the Office of The First Lady of the Federal Republic of Nigeria.
Kyari recalled that the government has taken various measures to alleviate the food crisis by releasing 42,000 metric tonnes of assorted food commodities from the National Strategic Food Reserve, purchasing 58,500 metric tonnes of milled rice from the Rice Processors Association of Nigeria, and acquiring an additional 30,000 metric tonnes of rice. However, he admitted that despite these efforts, food prices have continued to rise, and in some cases, food items have become available.
Despite the poor results, the minister assured that the government is committed to addressing the food crisis, declaring that the current situation cannot be allowed to continue.
While acknowledging the existing agricultural initiatives, programmes, and projects led by both the federal and state governments, he emphasised the need for the federal government and sub-nationals to act swiftly to respond to the emerging food availability crisis, underlining the gravity of the situation and the need for urgent and decisive action.
