Growing concerns over rising Food Prices and Inflation compounded by the severe hardship driven by the economic downturn have prompted the federal government to propose allowing massive food importation through a duty free import opening on certain foods for 150 days. While some criticized this decision, others applauded it as the right step of action in addressing the current situation. Prominent individuals like Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), believed that this decision could have a negative impact on Nigeria’s Agriculture and jeopardize the years of effort and investments that the government has put into the sector.
He said it is not feasible for the nation to rely on food imports to keep prices stable. Rather, it would be ideal to promote increased food production in order to keep food prices stable. This will also help stabilize the Naira by generating jobs and lowering foreign exchange expenses. Adesina called on the Nigerian government to help agricultural enterprises with the Private Sector and attain food self-sufficiency by leveraging the bank’s investments. In a statement, Minister of Agriculture and Food Security, Abubakar Kyari disclosed that the federal government plans to remove charges, levies, and taxes on the importation of husked brown rice, cowpeas, maize and wheat through the nation’s land and maritime borders within thr stipulated time frame.
250,000 metric tonnes of wheat will be imported.
The government anticipates that the new food import policy would result in a sharp decline in the cost of staple foods, of which prices have increased dramatically. A total of 250,000 metric tonnes of maize and 250,000 metric tonnes of wheat will be imported by the federal government. As announced by the minister, small-scale processors and millers around the nation would be given these semi-processed commodities. Additionally, the administration declared its intention to work with the states to increase Land Cultivation nationwide.
Nigerians have been struggling with escalating food costs in recent years. The situation was exacerbated by the removal of Fuel Subsidies and the floating of the country’s currency policy implemented by President Tinubu’s administration upon assumption of office in 2023. Over this period, the cost of essential staple commodities like bread, yam, rice, and wheat has continued to rise, pushing more Nigerians into abject Poverty and starvation in the face of skyrocketing inflation rates. Some business owners and farmers were forced to shut down operations due to the ongoing increase in costs for goods and services over the past year.
₦7.8 trillion on food imports in the last six years.
Similarly, a lot of farmers have already reduced the amount of crops and Livestock they produce because of the economic instability, Insecurity and erratic weather that are wreaking havoc on rural areas. In an attempt to combat the rise in food costs, the president issued a State of Emergency on food insecurity last year, but food inflation continued. Nigeria’s food inflation rate has dramatically increased in mid-2024, peaking at 40.66 percent in May of that same year. This is a significant increase compared to the 24.82 percent reported during the same period last year,
Basic foods like rice, yam, beans, and garri have seen price increases of up to tenfold in the last year due to the surge in food costs. Moreover, Nigeria’s food import bill has increased significantly in recent years. Over the last six years, Nigeria has spent a total of ₦7.8 trillion on food imports, with significant annual costs of ₦1.9 trillion in 2022 and ₦2 trillion in 2021. These numbers show that there is still a reliance on imported food in spite of efforts to boost local agricultural production.
Related Article: Country to Lower Food Prices in 180 Days
Recall that the federal government, under the President Tinubu administration had previously ruled out the importation of food as a solution to the nation’s economic problems and the exorbitant cost of food. This was mentioned by the president, who asserted the nation has the capacity to feed itself and potentially turn into a net exporter of food products during a meeting held in Abuja with the 36 governors of the federation earlier in February. Nonetheless, while long-term measures are being looked for to increase Local Food production, economists contend that temporarily opening the borders to food imports could help stabilize prices.