4 weeks ago
35 ARTICLE AD
One month shy of the closure of President Bola Tinubu’s promised duty-free window on food imports, Nigerians are left with nothing but empty promises.
On October 1, the President’s address confirmed the government’s duty-free policy for essential food imports. This measure, proposed to alleviate skyrocketing food prices, has become an utter disappointment. Nigeria’s inflation crisis—at an unsettling 32.7 per cent as of September 2024—has obliterated the purchasing power of the average Nigerian. And in the face of an impoverished, hungry populace, this government has been indifferent, tangled in bureaucracy and inaction.
This unfulfilled promise of a zero-duty policy, meant to stabilise food prices, has only deepened the despair of millions of Nigerians who struggle daily to afford basic foodstuffs.
Nigerians deserve a government that can act with resolve and compassion, not one stifled by bureaucratic logjams and leadership inertia. The President’s declaration of a 150-day duty-free food import window was a ray of hope for many. But the snail-paced, unclear directives from the Ministry of Finance, compounded by inter-agency disagreements and apparent role conflicts, have delayed any tangible action for months. Meanwhile, inflationary pressures relentlessly continue to squeeze the life out of the people. This is beyond economic mismanagement; it is a government’s dereliction of its duty to protect its citizens’ right to survival.
Since President Tinubu assumed office, Nigerians have borne the brunt of poorly executed economic policies. The latest inflation figures underscore a troubling trajectory: since the Tinubu administration took office in May 2023, inflation has jumped from 22.4 per cent to a record-breaking 34.19 per cent in June 2024, easing only slightly before rising once again to 32.7 per cent in September. The consequence of these unchecked inflation rates is painfully evident in daily market transactions, where food prices have become exorbitant, even for basic items.
This administration’s delay in implementing its own promised policies has compounded inflation’s impact. According to the National Bureau of Statistics, the surge in food inflation, which rose to 37.8 per cent in September, has devastated Nigerians’ ability to access affordable food. This rise is driven by escalating energy prices, higher transportation costs, and severe flooding affecting key agrarian communities. Despite all this, the President’s proposed zero-duty policy remains mired in bureaucratic hurdles, leaving Nigerian families to fend for themselves in a crippled economy.
At the root of this failure lies the Nigerian government’s notorious bureaucratic inefficiency. This was evident in the two-month delay following the Ministry of Finance’s failure to issue timely directives to initiate the duty-free food import programme. Even after Customs finally received the letter from the Finance Ministry on August 8, implementation has been stymied by confusion and conflict among the Nigerian Customs Service, the Federal Inland Revenue Service, and other agencies. This crisis of inter-agency cooperation is emblematic of a government that is disconnected from the urgency of the people’s needs.
Stakeholders in the import and distribution value chain are left in limbo, unsure about when, or even if, the zero-duty policy will be implemented. The President of the National Council of Managing Directors of Licensed Customs Agents, Lucky Amiwero, expressed his frustration at the government’s complete lack of responsiveness, remarking that “we don’t know what is going on” due to ambiguous policy communication. This government’s inability to implement its own promises has exacerbated the economic plight of its citizens, underscoring a tragic disconnect between governance and reality.
This government’s lack of effective intervention on food inflation is unconscionable, considering the severe hardship Nigerians are facing. Every day, more families fall below the poverty line, unable to afford staple foods that have doubled or even tripled in price. The impacts of this inaction are far-reaching. Hunger is not just a household issue; it reverberates through every sector, affecting productivity, educational outcomes, and health standards.
Many businesses, particularly small and medium enterprises, are on the verge of collapse, strangled by escalating operational costs, high exchange rates, and unrelenting inflation. Without adequate relief from import duties, which would lower the cost of food and other essential goods, the country’s economy is bound to suffer even further, trapping millions in a vicious cycle of poverty and hunger.
While the duty-free window may appear to be a positive short-term measure, analysts at Afrinvest Research argue that its effectiveness remains limited if not supported by a well-structured agricultural and infrastructural strategy. The nation’s inadequate agricultural production is exacerbated by poor infrastructure, frequent flooding, and persistently high costs of agricultural inputs. Without addressing these foundational issues, the zero-duty import policy is no more than a temporary fix — a stopgap that fails to address the underlying causes of food insecurity in Nigeria.
The current policy does not adequately tackle these root causes. Food imports alone cannot stabilise prices indefinitely. While the government’s intentions may have been noble, the decision to implement a short-term import waiver without a simultaneous overhaul of the agricultural sector demonstrates a lack of comprehensive economic planning. Moreover, currency depreciation has largely offset any positive impact that the duty-free policy could have had on reducing food prices. Since the policy’s announcement, the naira has depreciated by 5.5 per cent in the official market and by nearly 10 per cent in the parallel market, rendering the measure largely ineffective.
The government’s failure to implement the duty-free policy promptly has left Nigerians increasingly disillusioned. However, it is not too late for corrective action. Here are actionable recommendations that the Tinubu administration must consider to salvage what little remains of the policy’s potential impact:
The President must prioritise the immediate implementation of the duty-free window on essential food items. This should be accompanied by clear, direct communication from relevant ministries to all stakeholders in the import and distribution chains, ensuring that there are no further delays or misunderstandings.
Given the delays thus far, the government should extend the duty-free window beyond the initial 150 days. This extension would provide the public with meaningful relief, particularly as the holiday season approaches when food demand surges.
To prevent further bureaucratic delays, the government must establish a task force dedicated to coordinating efforts among the Finance Ministry, Customs, and FIRS. This task force should have clear accountability measures to ensure efficient communication and execution.
Also, the government should couple the duty-free window with a long-term plan to revitalise Nigeria’s agricultural sector. This would involve substantial investments in infrastructure, irrigation, and flood management to mitigate the risk of crop loss due to adverse weather conditions. Additionally, policies must address the high cost and low quality of agricultural inputs, allowing for greater self-sufficiency.
The Central Bank of Nigeria must take steps to stabilise the naira, particularly in the parallel market, as currency depreciation continues to inflate import costs. A stable exchange rate policy is essential for any food import strategy to have a sustained impact.
The Tinubu administration must rise above bureaucratic inertia and demonstrate that it values the welfare of the people over petty inter-agency conflicts and endless procedural delays.
