Food Crisis: FG Yet to Implement Food Duty Waiver Five Months After Announcement

Five months after the federal government announced a 150-day duty-free importation window for food items, the policy remains unimplemented, raising concerns amid rising food inflation.

The initiative, unveiled on July 8, 2024, was designed to reduce food prices by allowing duty-free importation of staple commodities like maize, husked brown rice, wheat, and cowpeas. The waiver period, intended to run until December 31, 2024, aimed to alleviate pressure on Nigerian households struggling with soaring food costs. However, no implementation details have been released by the government or the Nigeria Customs Service (NCS).

In the third quarter of 2024, the NCS estimated the policy could cost the government N188.37 billion in revenue over six months. Comptroller-General Adewale Adeniyi highlighted that Nigeria spent N3.82 trillion on importing wheat, beans, rice, and maize between 2020 and 2023.

Despite these projections, the implementation has stalled. The Customs Service previously stated that companies participating in the waiver must be Nigerian-incorporated and operational for at least five years. The Ministry of Finance was to provide lists of approved importers and quotas, but no significant progress has been reported.

This delay coincides with rising inflation on imported food items, driven by factors such as currency devaluation and global supply chain disruptions. The Nigerian Bureau of Statistics (NBS) reported a sharp increase in imported food inflation to 42.29% in November 2024, up from 23.74% in November 2023. This marks the highest rate in two years and highlights a troubling upward trend throughout 2024.

NCS spokesperson Aliyu Maiwada emphasized that the Ministry of Finance is responsible for identifying importers under the policy, stating, “It is a gradual process and in progress.” However, the Finance Ministry has declined to comment on the delay, while efforts to obtain input from the Ministry of Agriculture have also been unsuccessful.

Experts warn that the policy’s continued inaction exacerbates food insecurity. Joseph Momoh, a development expert with the Abuja Chamber of Commerce and Industry, expressed concern, noting that many Nigerian households remain burdened by high food costs.

“The waiver was expected to benefit low-income households, but as the new year begins, nothing has materialized. Food inflation continues to strain families. A 50kg bag of rice now costs N106,000 for local brands and N120,000 for imported ones, both far above the minimum wage of N70,000. The government must act swiftly,” he urged.