News in brief:
The Nigeria Customs Service (NCS) has started enforcing tax-free and duty-free importation of essential food commodities like rice, flour, and wheat to combat high food prices and acute famine as part of the Presidential Accelerated and Stabilisation Advancement Plan (ASAP).
Following the federal government’s announcement in July of establishing a 150-day duty-free import window for specific food commodities to combat the rising food prices and acute famine crisis in Nigeria, the country’s customs service has begun enforcing duty-free and tax-free importation of essential food commodities.
This initiative, led by Adewale Adeniyi, Comptroller-General of the agency, is part of the Presidential Accelerated and Stabilisation Advancement Plan (ASAP), which aims to import 250,000 metric tonnes of wheat and maize to replenish Nigeria’s strategic reserves.
FG’s commitment to lowering food prices
During a press conference, Adeniyi emphasised the government’s dedication to addressing the growing hunger crisis by reducing the cost of basic food items.
“The Nigeria Customs Service has suspended import levies and taxes on essential food goods to make them more affordable. We are committed to effortlessly implementing this plan to address our nation’s hunger crisis,” he stated.
In addition to easing imports, Nigeria’s customs has also streamlined export procedures to ensure that commodities reach international markets efficiently.
Tools such as the Advanced Ruling System, Authorised Economic Operator, and Time Release Study have been introduced to enhance trade, stimulate the economy, and create opportunities for farmers, craftspeople, and business owners.
Mixed reactions from the agricultural sector
The policy has received mixed reactions from stakeholders in the agricultural sector. For example, Dr. Akinwunmi Adesina, president of the African Development Bank (AfDB) and former Nigerian minister of agriculture, criticised the program. He warned that food imports could undermine Nigeria’s agricultural strategy. Similarly, Arch. Kabir Ibrahim, president of the All-Farmers Association of Nigeria (AFAN), expressed concerns that the policy could reverse the progress made in domestic production of wheat, maize, and rice.
With food inflation expected at 40% by May 2024, Nigeria is facing one of the most severe food crises in recent memory. According to the National Bureau of Statistics (NBS), the average price of staple items such as rice, beans, wheat, maize, and bread has more than doubled over the past year. Global development organisations like the World Bank, FAO, and World Food Program (WFP) project that over 32 million Nigerians could experience acute famine by 2024.
