The Nigerian government’s well-intentioned plan to alleviate soaring food prices through import duty waivers has been met with widespread criticism and frustration due to its delayed implementation. Announced in July 2024, the policy aimed to grant zero percent import duty and Value Added Tax (VAT) exemption on essential food items such as maize, rice, wheat, beans, and millet. The Nigeria Customs Service (NCS) received official notification in August, with the waivers intended to be effective from July 15th to December 31st, 2024. However, as the deadline approached, the policy remained unimplemented, triggering concerns and condemnation from stakeholders, including the Nigeria Labour Congress (NLC) and members of the Organized Private Sector (OPS).
The lack of action from the government has been described as a “systematic failure,” with critics highlighting the stark contrast between the promised “renewed hope” and the harsh reality faced by Nigerians struggling with escalating food costs. The delay has exacerbated the existing food crisis, with prices of staple foods continuing to rise. The NLC pointed out the dramatic price increase of a 50kg bag of rice, which surged from N26,000 before the current administration to a staggering N100,000, underscoring the severe impact on ordinary citizens. The desperation for affordable food has even led to tragic stampedes during palliative distributions, a grim testament to the extent of the crisis.
The government’s silence and inaction have further fueled the anxieties of stakeholders. Attempts to seek clarification from relevant ministries, including the Ministry of Agriculture and Food Security and the Ministry of Finance, proved futile, with officials either deflecting inquiries or claiming unavailability. The NCS, tasked with implementing the policy, stated that it had not received any approvals for the import duty waivers, effectively placing the onus back on the government. This lack of coordination and communication has only deepened the sense of frustration and distrust.
The OPS echoed the NLC’s concerns, emphasizing the crucial role of government intervention in addressing food inflation, the primary driver of the rising cost of living. The promised duty and VAT removals were seen as a vital step towards making food more affordable and accessible to the masses. However, the non-implementation of these measures has dashed hopes and threatens to worsen the already precarious situation. The OPS urged the government to fulfill its promise, stressing the direct impact of high food prices on poverty, hunger, and the overall well-being of citizens.
The Lagos Chamber of Commerce and Industry (LCCI) pointed to the lack of any noticeable impact on market prices as evidence of the policy’s non-implementation. The LCCI President called upon the government to explain the reasons for the delay and the apparent ineffectiveness of the initiative. The Nigerian Association of Small-Scale Industrialists (NASSI) also criticized the government’s failure to deliver on its promise, arguing that the implemented waivers would have significantly reduced costs for businesses and consumers alike, potentially mitigating the current inflationary pressures. NASSI urged the government to reconsider its stance and implement the policy as a matter of urgency to alleviate the suffering of the populace.
Underscoring the severity of the situation, the National Bureau of Statistics (NBS) reported that food inflation rates in Abuja and 19 states exceeded 40% in November 2024. Sokoto State recorded the highest rate at 51.3%, closely followed by Yobe at 49.69% and Edo at 47.77%. These alarming figures reflect the widespread impact of rising food prices, affecting a significant portion of the Nigerian population. The NBS data also revealed a sharp increase in general food inflation, reaching 39.93% in November 2024, compared to 32.84% in the same period the previous year. Imported food inflation also surged, highlighting the vulnerability of the Nigerian market to global price fluctuations and the urgent need for effective domestic policies. The combination of delayed policy implementation, rising inflation, and lack of government responsiveness paints a bleak picture for food security in Nigeria and underscores the urgent need for decisive action to address this escalating crisis.
