Tinubu Under Pressure to Abandon Food Import Waiver 

President Bola Ahmed Tinubu

The Federal Government’s plan to waive duties on food imports has faced mounting opposition from private sector operators and stakeholders. President Bola Tinubu’s administration announced the policy in July 2024 to address rising food prices and hunger but concerns about its long-term impact on local businesses and employment have stalled its implementation. 

What is the Food Import Waiver Policy? 

On July 10, 2024, Agriculture Minister Abubakar Kyari unveiled a 150-day waiver on duties, tariffs, and taxes for importing maize, husked brown rice, wheat, and cowpeas through land and sea borders. This measure aimed to reduce food costs and ease hunger by making essential food items more affordable. The government also planned to import 250,000 metric tons each of wheat and maize to support small-scale processors. 

However, the policy’s rollout never materialized. Officials estimate the government could lose over ₦188 billion in revenue over six months if the waiver is implemented. The Nigeria Customs Service stated that companies wishing to benefit from the waiver must be incorporated and operational in Nigeria for at least five years. 

Why the Opposition? 

The private sector argues that the waiver would harm local producers by flooding the market with cheaper imports, making it harder for them to compete. Groups such as the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have urged the government to prioritize boosting local production instead of relying on imports. 

Segun Kuti-George, Vice President of the Nigerian Association of Small-Scale Industrialists, described the waiver as a “double-edged sword.” While it could lower food prices temporarily, it risks damaging local production and employment. Economist Marcel Okeke warned that poor implementation could lead to corruption, substandard imports, and long-term harm to domestic industries. 

A balanced approach is essential to address immediate food challenges while safeguarding local industries and jobs. 

The Current Situation 

Stakeholders are pressuring the government to abandon the policy entirely, urging it to focus on sustainable solutions like improving agricultural output and supporting local farmers. The Finance Minister, Wale Edun, acknowledged these concerns and said the government is exploring ways to address food inflation without undermining local production. 

The food import waiver policy was intended as a temporary fix for food scarcity and rising costs. However, its lack of implementation has raised questions about its feasibility and effectiveness. Nigerians need a balanced approach that addresses immediate food challenges while protecting local industries and jobs. For now, the debate continues as the government weighs its options.