Duty suspension on imported food will crash prices – Group

Duty suspension on imported food will crash prices – Group

A Policy think-tank group, Independent Media & Policy Initiative (IMPI), has predicted a crash in the high cost of food items with the suspension of import duties and taxes on essential food items by the federal government.

The Comptroller-General of Nigeria Customs Service (NCS), Adewale Adeniyi on Monday announced the suspension import duties on essential food items.

Commending President Bola Ahmed Tinubu’s decision, the group maintained that the intervention was timely in view of the prevailing situation in the country and the ongoing agitations by some concerned Nigerians who are threatening to protest high cost of living.

Addressing newsmen in Abuja on the quarterly assessment for the year 2024, Chairman of the IMPI, Chief Niyi Akinsiju, said it was gratifying to note that the Tinubu-led government policies have begun to show initial capacity to redress the challenges they were conceived to address.

“It is on record that the federal government has distributed 60,452metric tons of improved seeds, 887,255metric tons of seedlings, 138 value kits, 501,726 liters of agrochemicals, 62,328.5metric tons of inorganic fertilizers, 1,000kg fungicide, and 33,200 equipment to famers across different value chains to enhance agricultural production.

“This flurry of President Tinubu interventions in agriculture, has at the last count, successfully generated a total of N309bn into the economy in one year, suggesting a resurrection of exporting activities in the agriculture sector. On aggregate, the recent waiver of import duties and tax on food importation will make food abundantly available and affordable locally.

“Grounded on this projection is the $20 billion foreign investment commitments the federal government had secured to revolutionize the agricultural sector, in the bid to ensure food security in the country, and to reinvent Nigeria’s pride of place as the agricultural giant of Africa.

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“Besides, the creation of the Ministry of Livestock Development may have opened a new vista in concerted efforts to advance agriculture. This initiative reveals the true intention of the President to harness Nigeria’s huge livestock potentials and to find a lasting solution to the incessant Farmers-Herders clash in the country as well as reinforce the value chain that will create more employment opportunities.

“We are well aware of Nigeria’s rising year-on-year inflation figure standing at 34.19% in June 2024. This figure is primarily driven by surging food prices, which culminated in higher food inflation at 40.87% in the month.

“The increase in inflation rate may have been aggravated by the depreciation of the Nigerian currency on the back of the harmonization of the foreign exchange windows and the removal of fuel subsidy by the federal government; the twin policies that now define the structural reformation of the economy,” it stated.

Commending the government of Kebbi, Niger and South-west States for their interventions, the group appealed to other state governors to complement the efforts of the federal government in boosting agriculture.

“We are, however, compelled by to register our displeasure over the slowness of the sub-nationals to complement the efforts of the federal government in boosting agriculture. We applaud state governors who are investing in agriculture.

“We urge others to join the efforts to grow the food we eat. State Governors and Local Government Administrators, should utilize the financial opportunity presented by the tremendous increase in their various allocations from FAAC, to support the exemplary efforts of the federal government towards massive food production.”

On the nation’s foreign reserves, IMPI commended federal government efforts, acknowledging the vast improvement in the balance of the nation’s foreign reserve which increased from $32.29 billion in April 2024 to $37.05 billion in July 18, 2024.

“In other sectors of the economy, beginning with power, we are encouraged by the quantum leap in power generation and transmission. The sector recorded a number of interventions through policies and actions by the federal government. It was a remarkable feat when 700 megawatts of electricity were added to the national grid with the commissioning of the Zungeru Hydro- Electric Power Station in Niger State.

“In addition, the power sector also recorded the commissioning of two substations in Kebbi and Ajah in Lagos to consolidate the nation’s electricity distribution capacity. This has led to a considerable improvement in power supply across the country.

“We also commend the President for the payment of the historical N3.3 trillion Naira debt owed the power sector, which for years, crippled the nation’s capacity to generate, transmit and distribute the required electricity, and unfortunately subjected the populace to the agony of endless power outages.

“By our own understanding, it may be slow, it may be painful, but it is certain that as a people, we will witness this upcoming period of economic upsurge and prosperity.

On the proposed nationwide protest, the group appealed to the organisers to ceasefire, grant government more time and embrace dialogue as a means of resolving the demands.

“Those who want to protest have the right to protest, but this must be done in the appropriate context. A protest should be anchored on substantive rationale or reasons that are achievable. Based on this, we appeal for patience so as not to disrupt the gathering momentum being built in the nation’s economic sphere that may be counterproductive.”

Duty suspension on imported food will crash prices – Group