Inflation: Finally, Tinubu suspends tariffs on food imports

by Samson Echenim July 9, 2024

written by Samson Echenim July 9, 2024

348

After several weeks of expectation, President Bola Tinubu has suspended payment of tariffs on imported grains and its semi-finished foods into Nigeria for five months.

The Nigerian Economy reports that this is the latest effort by the Tinubu administration to curb unprecedented assailing inflation in Africa’s most populous country.

Tinubu had plunged Nigeria into an unabated hyperinflation since June 2023 since he became the country’s president after he announced removal of government subsidy on premium motor spirit (PMS) popularly known as fuel. Since then, cost of transportation, food and other services have gone up by at least 1,000% on the average and there does not seem to be an end to the inflation in the country soon.

You Might Also Like

Apapa Port Customs seizes 12 containers of illicit, expired drugs worth N1.8bn in tariffs

August 15, 2024
Ex-NIMASA DG hails LG autonomy, tasks Nigerians on accountability

July 14, 2024

But yesterday the Federal Government announced suspension of import duties on foods such as rice, maize, wheat and their semi-finished products imported through sea and land. The foods are major staple foods for Nigerians after the locally produced garri.

President Bola Tinubu

The Federal Government also expressed its decision to collaborate with states to expand land cultivation across the country.

At a press conference in Abuja yesterday, the Minister of Agriculture and Food Security, Abubakar Kyari, said the 150 days of duty-free imports would be valid for commodities including maize, husked brown rice, wheat, and cowpeas.

The initiative which is part of the Presidential Accelerated Stabilisation and Advancement Plan would also enable the Federal Government to import 250,000 metric tonnes of wheat and 250,000MT of maize.

The minister explained that the imported food commodities in their semi-processed state would target supplies to the small-scale processors and millers across the country.

He said, “To ameliorate food inflation in the country caused by affordability and exacerbated by availability, the government has taken a raft of measures to be implemented over the next 180 days:

“A 150-day duty-free import window for food commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas. Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price.

“I am aware that some good citizens might be concerned about the quality of the would-be imported food commodities as it relates to the trending worries around the genetic composition of food. I am glad to reiterate that the government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.”

A direct positive implication of the latest government move is a reduction of pressure on forex as demand for forex to import the affected foods would now relaxe. This can further strengthen the naira against the dollar. It is also expected to lead to reduction in cost of the foods. Both ways, the current assailing inflation may be further tamed.

However, there are negative implications which may include hurting ongoing initiatives to improve food production locally.

Minister of Agriculture, Abubakar Kyari

However, justifying the new policy, Kyari said: “We have all been witnesses to the escalating cost of food items in all parts of the country. There is virtually no food item that has not had its price raised to a level higher than what a good many Nigerians can afford.

“We have heard the cries of Nigeria over the prices of food items and condiments, with some now describing tomato as gold and proposing a variety of recipes to prepare soups and dishes with some of the overly priced food items.

“What in the past was regarded as common items such as yam, plantain, and potato now command excessively high figures and Nigerians are right to wonder how and why things are the way they are.

“As a government under the leadership of President Tinubu, members of the Federal Executive Council and indeed all other operatives in the MDAs are fully aware of the hardship occasioned by the high cost of food items in our country. There is no doubt that food inflation is a direct consequence of several factors.”

Since the All Progressives Congress (APC) began to rule Nigeria starting with immediate past president Muhammadu Buhari, who removed a part of subsidy on fuel, food cost had gone up astronomically. With the coming of Buhari, price of a 50kg bag of rice went up from N7,500 to N30,000. Under Tinubu, the stapple food cost has more than doubled up to between N80,000 and N90,000, representing 200% increase and 1,100% from 2014.

The situation is worse for a more staple food like garri, which has risen from N100 a bucket in 2014 to N3,500 currently. This rise is out of world and represents a killing 3,400%. Price of beans also rose from N150 in 2014 to N4,500 representing 2,900%. On the pasta side, spaghetti rose from N50 in 2014 to N900, representing 1,700%. The trend is same across all foods, including vegetables and fruits.

But the minister claimed that foods have only rising by 40%, while making references to figures from the National Bureau of Statistics (NBS).

Samson Echenim

I am a business journalist with nearly 2 decades of experience. I believe in the good journalism upholding the ethics of the profession. Journalism should work as a catalyst for economic development and a healthy nation. From writing news, features and business articles, and anything in-between, to crafting investigative and development reports, it is always a pleasure to engage my world in the most productive manner. Welcome to my world.

Samson Echenim

Leave a Comment Cancel Reply

Useful Links

Edtior's Picks

Latest Articles

Inflation: Finally, Tinubu suspends tariffs on food imports

JUST IN: Apapa port Customs half-year revenue collections rise by 143%, hit N1.02trn

Nigeria’s external reserves in 13 months high, hits $34.66bn

You may also like

Leave a Comment Cancel Reply

Useful Links

Edtior's Picks

Latest Articles