As Nigeria braces for the implementation of an import duty waiver on essential food items, including rice, stakeholders in the Organized Private Sector and the Rice Processors Association have been vocal about their concerns regarding the timeline and efficacy of the policy. They have urged the government to extend the current deadline, which is set for December 2024, arguing that the policy has not yet yielded any reductions in food prices since its announcement on July 15, 2024. The initiative, aimed at promoting affordability and addressing the country’s food security challenges, is under scrutiny as inflation rates soar, exacerbating the cost of staple foods. Thus far, no importer or company has benefitted from the waiver, raising questions about the policy’s immediate effectiveness.
Initially, the waiver was designed to alleviate the financial burden of importing staple foods by removing or minimizing import duties and value-added tax (VAT). Given Nigeria’s alarming food inflation rate of 37.77% in September and an overall inflation rate of 32.70%, the waiver was expected to provide a much-needed lifeline by easing the cost of essential commodities, including maize, wheat, beans, and rice. However, despite the policy’s well-intentioned goals, the three-month delay in its implementation and the lack of clarity about the guidelines have resulted in widespread skepticism among stakeholders who feel that they have not yet seen the anticipated benefits.
In an exclusive interview, Dr. Andy Ekwelem, Director-General of the Rice Processors Association of Nigeria (RPAN), elaborated on the need for an extended timeframe for the waiver, stating that the logistical realities of importing necessary supplies imply a requirement for further adjustments. Stakeholders hope to ensure a hitch-free implementation before the program inadvertently leads to yet another food crisis due to escalating prices, particularly in staple items such as rice. With no final guidelines currently confirmed, concerns are rising about the efficacy of the implementation process, which has yet to yield tangible results for the agricultural sector.
Responses from other stakeholders reveal a broader discontent with the delayed implementation of the waiver. Dele Oye, the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), emphasized the need for a more coordinated approach to tackle the economic conditions underpinning inflation, urging the government to reconsider the initial timeframe of the policy. Echoing similar sentiments, Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, stressed the urgency for the government to convert their pledges into action, as stagnating food prices continue to drive inflation and deteriorate living conditions for Nigerians.
Gabriel Idahosa, the President of the Lagos Chamber of Commerce and Industry, described the current situation as one without clear evidence of the policy’s impact. He noted that the anticipated reductions in food prices have yet to materialize, demanding accountability from the government for the stagnation in the policy’s execution. Idahosa also encouraged importers facing difficulties to voice their complaints, either as individuals or through collective associations, to ensure their grievances are addressed. The call for transparency and accountability reflects the disillusionment in the private sector regarding governmental effectiveness in policy implementation.
Amidst the frustration, Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria, expressed cautious optimism, suggesting that gains from the policy could begin to emerge by November once bureaucratic hurdles are resolved. He warned, however, that stakeholders should avoid exploiting the waiver by engaging middlemen who could sabotage the intended benefits for local production and consumers. Ajayi-Kadir stressed the importance of monitoring the policy closely to enable qualified importers with milling capabilities to effectively navigate the waiver and meet local demand for food staples.
In summary, while the Nigerian government has introduced an import duty waiver on essential food items to tackle inflation and food security, the delays in implementation, lack of clear guidelines, and the absence of visible benefits have led to widespread dissatisfaction among key stakeholders in the food industry. Various groups, including agricultural associations and chambers of commerce, have called for an extension of the waiver deadline to better adapt to the market environment and are urging the government to ensure effective execution of the policy. The long-term success of this waiver remains contingent on its prompt implementation, stakeholder cooperation, and transparency in the process, which are crucial for alleviating the food crisis and restoring confidence in Nigeria’s economic landscape.
