President Bola Ahmed Tinubu‘s administration is grappling with mounting pressure from stakeholders to review the food import waiver policy introduced in July 2024. This policy, aimed at addressing the soaring food inflation that has gripped the nation, has raised significant concerns about its potential impact on local industries, job creation, and the overall economy.
Sources within the Presidency reveal that the private sector is at the forefront of this opposition, warning that an unrestricted influx of food imports could undermine domestic agricultural production, deter critical investments, and escalate unemployment levels. While the waiver was initially designed to mitigate the effects of high food prices, critics argue that its implementation could lead to long-term economic vulnerabilities.
Speaking anonymously, a high-ranking government source told The Punch, “The waiver has received significant backlash from many quarters. The government is deliberately taking a cautious approach to safeguard local industries from the potential adverse effects of this policy. Industry groups like the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have been particularly vocal, advocating for policies that prioritize local agricultural production over imports.”
Another source within the Organized Private Sector expressed grave concerns, emphasizing that widespread food importation would devastate domestic industries and trigger significant job losses. These concerns echo across various economic sectors, with business leaders urging the government to reconsider its stance.
Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, offered a nuanced perspective on the issue, describing the policy as a “double-edged sword.” In his words, “Every policy has its advantages and disadvantages. The challenge lies in ensuring that the benefits outweigh the risks before proceeding with implementation. We need a clear framework to evaluate the long-term impact of this policy on local industries and national development.”
The food import waiver, unveiled on July 10, 2024, by Agriculture Minister Abubakar Kyari, suspended duties, tariffs, and taxes on key food imports such as maize, husked brown rice, wheat, and cowpeas for a 150-day period. The initiative was accompanied by plans to import 250,000 metric tonnes of wheat and maize to be distributed to small-scale processors and millers, a move intended to stabilize food prices.
However, implementation delays have compounded the situation, leaving millions of Nigerians to contend with escalating food costs. The Nigeria Customs Service estimates that the waiver could result in a ₦188.37 billion revenue shortfall over six months. Additionally, strict eligibility criteria—requiring companies to be registered in Nigeria for at least five years—have further hindered execution.
Critics, including economists and industry leaders, view these setbacks as evidence of inefficiency and poor inter-agency coordination. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, lamented the lack of alignment between government agencies. “The disagreement between the Nigeria Customs Service and the Federal Ministry of Finance highlights a troubling lack of organization. To address food shortages, the government must strike a balance between short-term import measures and long-term strategies to boost local agriculture,” he stated.
Economist and sustainability expert Marcel Okeke issued a stark warning about the potential consequences of the policy. “Opening the floodgates for imports risks driving local producers out of business,” he said. “This is reminiscent of the textile industry’s decline when unrestricted imports flooded the market. Such an approach could discourage domestic production, jeopardize self-sufficiency, and pave the way for substandard goods to dominate the market.”
Okeke stressed the importance of prioritizing self-reliance, urging the government to adopt measures that support local farmers and producers. “Our focus should be on developing indigenous capacity to meet national demands. Imports should only serve as a temporary supplement, not a primary solution,” he added.
Finance Minister Wale Edun acknowledged these concerns, assuring stakeholders that the policy is under review to minimize its impact on the local economy. “We are working to address emerging issues and ensure that the waiver does not undermine our domestic food production capabilities,” he stated in a recent press briefing.
As debates surrounding the food import waiver continue, stakeholders remain sharply divided. While some advocate for its potential to ease food inflation in the short term, others warn of its far-reaching economic risks, emphasizing the need for a more sustainable approach to achieving food security in Nigeria.
