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Tinubu Administration Faces Pressure to Abandon Food Import Waiver Amid Local Industry Concerns

Written by Agboola Oluwafemi on January 9, 2025

News Views: 112

The administration of President Bola Tinubu is facing significant pressure to abandon the food import waiver announced in July 2024.According to multiple sources in the Presidency, this pressure stems from private sector stakeholders who argue that allowing food imports could undermine local investments and exacerbate unemployment in Nigeria.

Representatives from the private sector described the policy as a double-edged sword—one that might lower the prices of imported goods but at the expense of local production.

A source within the Presidency, who requested anonymity due to lack of authorization to speak publicly, remarked, “A lot of media outlets have reported on the government’s delay in implementing the food import waiver.

The primary reason for the hesitation is the need to safeguard local businesses. Numerous groups, including the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI), have lobbied the Federal Government to prioritize boosting local production rather than relying on food imports.”

Another source added that members of the Organized Private Sector (OPS) have maintained that “importation will destroy local industries and jobs.”

On July 10, 2024, the Minister of Agriculture and Food Security, Abubakar Kyari, announced the suspension of duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas for 150 days. This waiver was applicable through both land and sea borders. Kyari explained, “To address food inflation caused by affordability and availability issues, the government has introduced a series of measures to be implemented over the next 180 days.”

The measures included a 150-day duty-free window for specific food imports and a requirement that imported goods comply with a Recommended Retail Price. The minister also revealed that the government planned to import 250,000 metric tons each of wheat and maize to support small-scale processors and millers. Despite this announcement, no details on implementation were provided by the government or the Nigeria Customs Service.

In the third quarter of 2024, the Nigeria Customs Service estimated a potential loss of ₦188.37 billion in revenue over six months due to the duty waivers.

In August 2024, Customs stipulated that only companies incorporated in Nigeria and operational for at least five years would qualify to participate in the waiver program. However, the initiative failed to take off, further exacerbating food insecurity in the country.