The Bola Ahmed Tinubu administration is under increasing pressure to reassess the food import waiver introduced in July 2024. While the policy was initially intended to curb soaring food inflation, critics warn it could undermine local industries, discourage investments, and exacerbate unemployment.
Private sector leaders have emerged as key opponents of the waiver, which suspends duties, tariffs, and taxes on imports of maize, rice, wheat, and cowpeas for 150 days. Industry groups, including the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI), argue that the measure threatens domestic production and could destabilize the economy.
A source within the Presidency, speaking to The Punch on condition of anonymity, revealed the government is treading cautiously.
“Many media outlets have criticized the administration for not fully implementing the food import waiver,” the source said.
“However, the government is carefully evaluating its impact on local industries.”
Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, described the policy as a “double-edged sword.” He remarked, “Every policy has its pros and cons. The key is to weigh the advantages against the disadvantages before implementation. We must assess whether the benefits truly outweigh the risks.”
Despite its potential benefits, the waiver has faced delays, with implementation yet to begin. The Nigeria Customs Service estimates the policy could result in a ₦188.37 billion revenue loss over six months. Compounding the issue, eligibility criteria requiring companies to be at least five years old and registered in Nigeria have slowed progress, leaving many Nigerians grappling with escalating food prices.
Femi Egbesola, President of the Association of Small Business Owners of Nigeria, criticized the lack of coordination between government agencies.
“The blame game between the Nigeria Customs Service and the Federal Ministry of Finance over non-implementation reflects poor governance,” he stated.
“Addressing food deficits through short-term imports is essential, but the government must also prioritize medium- and long-term strategies to support local agriculture.”
Economist Marcel Okeke echoed these concerns, warning that the policy could devastate local producers.
“This approach risks pricing domestic farmers out of the market, as we saw with the decline of the textile industry when imports flooded the market,” he said.
“The government must prioritize self-reliance and organic growth, using imports only as a temporary supplement.”
Agriculture Minister Abubakar Kyari announced the waiver on July 10, 2024, as part of a plan to import 250,000 metric tonnes of wheat and maize for small-scale processors and millers. However, critics argue that non-implementation signals inefficiency and inconsistency within the administration.
Finance Minister Wale Edun acknowledged the concerns and reassured stakeholders that the government is reviewing the policy.
“We are addressing emerging issues to ensure the policy does not undermine domestic food production capacity,” Edun said.
