Nigeria’s Food Waiver Policy Stalls Amid Rising Inflation
2 min read
The Federal Government’s pledge to ease food inflation through a duty waiver on imported staples has faltered, prompting sharp criticism from labour unions and private sector groups. Despite being announced in July and formally approved in August, the policy remains unimplemented, leaving Nigerians grappling with escalating food prices and inflation exceeding 40% in some states.
A Promise Unfulfilled
President Bola Tinubu’s administration had introduced a zero per cent import duty and VAT exemption on key food items—such as maize, brown rice, wheat, beans, and millet—effective from July 15 to December 31, 2024. The Nigeria Customs Service (NCS) confirmed the policy’s approval in a circular issued in August, but as the year-end deadline looms, stakeholders report no tangible action.
The Nigeria Labour Congress (NLC) and the organised private sector have lambasted the delay. Lagos NLC Chairperson Funmi Sessi condemned the government’s inaction, describing it as “systematic failure.” She highlighted how food prices, including a 50kg bag of rice now costing ₦100,000—up from ₦26,000 before this administration—underscore the hardship faced by Nigerians.
“Nigerians were promised renewed hope, but this hope has yet to materialise,” Sessi remarked. “Stampedes during palliative distributions reveal the harsh realities of food scarcity and unaffordability.”
Mounting Economic Pressures
The private sector has echoed these concerns. Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, noted that food inflation continues to drive poverty and hunger. “The non-implementation of the zero-duty policy ensures prices remain high, compounding the struggles of impoverished Nigerians,” he stated.
Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, added that there was “no evidence in the market” of reduced food prices, questioning why the government’s policy has not been operationalised.
Meanwhile, Abuja and 19 states reported food inflation above 40% in November, according to the National Bureau of Statistics. States like Sokoto, Yobe, and Oyo are among those hardest hit, reflecting widespread economic distress.
Bureaucratic Paralysis
Efforts to clarify the delay have yielded little response from government ministries. Officials at the Ministries of Finance and Agriculture either deflected inquiries or cited logistical constraints. The NCS, responsible for implementing the policy, stated it had not received approval for specific importers to proceed.
“We implement government policies, but if no one has been approved, there’s nothing we can do,” said Abdullahi Maiwada, the NCS National Public Relations Officer.
Calls for Urgent Action
Stakeholders are urging the Federal Government to act swiftly. “If implemented, this policy could alleviate suffering by reducing food costs and inflation,” argued Segun Kuti-George, Vice President of the Nigerian Association of Small-Scale Industrialists.
As the year draws to a close, the government faces mounting pressure to deliver on its promises. For millions of Nigerians, the stakes are higher than ever, with inflation and food insecurity threatening to deepen the country’s economic crisis.
About The Author
