The administration of President Bola Tinubu is under mounting pressure from private sector operators to abandon the food import waiver policy announced in July 2024. Critics argue that the policy, aimed at reducing food prices, risks undermining local production and worsening unemployment in Nigeria.
The Food Import Waiver Policy
On July 10, 2024, the Federal Government, through the Minister of Agriculture and Food Security, Abubakar Kyari, announced a 150-day suspension of duties, tariffs, and taxes on the importation of certain food commodities. These included maize, husked brown rice, wheat, and cowpeas.
The government also planned to import 250,000 metric tons of maize and wheat to support small-scale processors. However, the initiative never gained traction, leaving hunger and food inflation unaddressed.
Kyari emphasized that the policy was intended as a temporary intervention to alleviate food inflation caused by affordability and availability issues. Imported commodities were to be sold at a Recommended Retail Price to prevent exploitation.
Implementation Delays and Private Sector Concerns
Despite the policy’s announcement, no implementation framework has been provided. Multiple sources suggest the government’s hesitation stems from pressure by private sector stakeholders, including the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI). These groups fear the waiver would hurt local producers and lead to job losses.
A presidency insider revealed that “the government is slowing it down to protect local companies,” with the emphasis shifting towards increasing local agricultural output. Private sector players echoed these concerns, describing the policy as a “double-edged sword.”
Mixed Reactions from Stakeholders
Opinions about the policy have been divided. The National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, acknowledged the potential benefits of reducing food prices but warned of its adverse effects on local producers.
He stated, “The food import waiver is a stop-gap solution. While it can temporarily reduce food costs, it risks hurting local production, which must remain a priority.”
Similarly, the Director of the Centre for Promotion of Private Enterprise, Dr. Muda Yusuf, noted that bureaucratic challenges, rather than private sector resistance, were the main reasons for the policy’s failure to take off. Yusuf emphasized that the waiver was meant to be a temporary measure to bridge food scarcity before the harvest season.
Policy Fallout and Public Criticism
The non-implementation of the policy has drawn sharp criticism from stakeholders, with many blaming governmental inefficiencies. The National President of the Association of Small Business Owners of Nigeria, Dr. Femi Egbesola, described the situation as a failure of governance.
“It’s unfortunate that a presidential pronouncement of such importance was not implemented. The blame game among key implementers, such as the Nigeria Customs Service and the Federal Ministry of Finance, reflects systemic policy failures,” Egbesola said. He added that bridging the food deficit should have been prioritized as a short-term solution while incentivizing agriculture in the long term.
Economic and Social Implications
The waiver’s failure to address food inflation has exacerbated the hardship faced by Nigerians. With food prices remaining high, the policy’s inability to take off has underscored the need for cohesive action among government agencies.
Egbesola stressed the importance of aligning short-term interventions like imports with medium and long-term plans to support local agriculture. He argued that the well-being of Nigerians should outweigh business or profit-driven considerations.
Looking Ahead
As pressure mounts on the Tinubu administration to abandon the waiver policy, stakeholders are calling for a balanced approach. While the need to protect local industries is acknowledged, the government must also address the immediate food insecurity facing millions of Nigerians.
Moving forward, experts recommend enhanced support for local agriculture through subsidies and incentives, combined with targeted short-term interventions to stabilize food prices. The administration’s ability to navigate these competing demands will be critical in restoring public trust and ensuring food security.
