The Nigeria Customs Service (NCS) revealed that the Federal Government granted waivers amounting to N97 billion between 2024 and the first quarter of 2025 for the importation of essential food items such as maize, rice, and sorghum. This move was part of the government’s ongoing efforts to combat food insecurity and alleviate the burden of high food prices on Nigerian citizens. The waivers were intended to reduce import costs and consequently lower market prices, offering relief to consumers grappling with escalating living expenses. This initiative stemmed from the government’s recognition of the severe impact of food inflation on the populace and the need for interventionist measures to stabilize the market and improve affordability.
The waiver program was initiated in July 2024 with an initial timeframe extending to December of the same year. It targeted key staple foods including rice, wheat, maize, and sugar, which constitute a significant portion of the Nigerian diet. By temporarily removing import duties, the government aimed to make these essential commodities more accessible and affordable for the average Nigerian. The expectation was that this would not only curb the rising food prices but also stimulate economic activity by easing the financial strain on households. However, despite these well-intentioned efforts, the initial impact of the waivers appeared limited. Food prices remained stubbornly high, supply chains experienced disruptions, and the nation’s reliance on imported food continued unabated.
Contrary to the initial underwhelming results, the NCS maintains that the waivers have indeed played a significant role in mitigating food inflation. According to Comptroller-General of Customs, Adewale Adeniyi, the waivers, especially those implemented in the first quarter of 2025, have contributed to a noticeable reduction in food prices, ranging from 12% to 18%. He pointed to the waivers on maize (N45.3 billion free-on-board value), rice (N751.6 million), and sorghum (N2.3 billion) in Q1 2025 as key drivers of this price decrease. Furthermore, he argued that the larger waivers from 2024, particularly those on rice (N45.9 billion free-on-board value) and wheat (N2.8 billion), are beginning to manifest their full impact after overcoming initial delays in permeating the supply chain.
Adeniyi emphasized the cumulative effect of both the 2024 and 2025 waivers, asserting that they have collectively contributed to a steady improvement in food affordability. While the 2024 waivers encountered initial logistical hurdles and delays in reaching the market, they eventually led to increased supply. The 2025 waivers provided further support by augmenting this increased supply and further easing price pressures. This combined approach, according to Adeniyi, has helped to stabilize prices by improving overall availability. He pointed to National Bureau of Statistics (NBS) price data as evidence of this positive trend, suggesting it reflects the gradual but ultimately significant impact of the duty relief measures. This data, he argued, demonstrate how customs adjustments can influence food costs both in the short term and over longer periods.
However, industry stakeholders have expressed differing views on the effectiveness of the waivers. Abayomi Duyile, a seasoned freight forwarder, acknowledged the government’s efforts to alleviate hardship through waivers on essential food items like wheat, sorghum, and husked rice. He confirmed that the NCS did not collect duty on these items due to the waivers, explaining that the reported N97 billion represents the total value of these exempted imports. However, Duyile questioned the tangible impact of these measures, citing the consistently high prices of these products in the market. He attributed the limited impact to the fact that the rice waiver, for instance, applied to husked rice rather than the finished product that consumers directly purchase. He argued that waivers on finished products would have yielded a more noticeable reduction in market prices.
Echoing this skepticism, Nnadi Ugochukwu, a leader within the National Association of Government Approved Freight Forwarders, called for greater clarity from the NCS regarding the specific nature of the waivers granted. This call for transparency reflects the broader debate surrounding the efficacy of the government’s intervention and highlights the need for more detailed information to assess the true impact of these measures. The conflicting perspectives between the government’s claims of success and the skepticism expressed by industry players underscore the complexities of the food import market and the challenges of achieving meaningful price reductions through policy interventions. The debate also raises questions about the potential loopholes and the need for more targeted strategies to ensure that the benefits of such waivers translate into tangible relief for consumers.
