Hunger crisis deepens as Tinubu’s food import waiver fails to take off
President Bola Ahmed Tinubu‘s administration is facing mounting pressure to reconsider the food import waiver introduced in July 2024, as concerns grow about its potential harm to local industries and employment.
Insiders within the Presidency have disclosed that the private sector is leading this opposition, warning that unrestricted food imports could weaken domestic production, deter investments, and increase unemployment. While the waiver was initially aimed at curbing food inflation, critics argue it poses significant economic risks.
A source speaking anonymously to The Punch stated, “Many media outlets have been criticizing the government for not fully implementing the food import waiver. However, the government is taking a cautious approach to protect local industries. Groups like the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have strongly opposed the measure, emphasizing the need to focus on boosting local production instead.”
Another insider revealed that members of the Organized Private Sector have argued that food importation will devastate local companies and lead to job losses.
Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, described the policy as a “double-edged sword.” He stated, “Every policy has pros and cons. The key is to weigh the advantages against the disadvantages before implementation. We must carefully assess whether the benefits outweigh the risks.”
Announced by Agriculture Minister Abubakar Kyari on July 10, 2024, the waiver suspended duties, tariffs, and taxes on imports of maize, husked brown rice, wheat, and cowpeas for 150 days.
The policy aimed to address food inflation caused by high prices and limited availability. As part of the initiative, the government also planned to import 250,000 metric tonnes of wheat and maize for distribution to small-scale processors and millers.
However, implementation has stalled, leaving many Nigerians to struggle with rising food prices. The Nigeria Customs Service estimated that the waiver could result in a ₦188.37 billion revenue loss over six months. Additionally, eligibility criteria requiring beneficiary companies to be at least five years old and registered in Nigeria have further complicated execution.
Critics, including business advocates and economists, view the policy’s non-implementation as a sign of inefficiency and inconsistency in governance.
Femi Egbesola, President of the Association of Small Business Owners of Nigeria, criticized the lack of coordination among government agencies, stating, “The blame game among the Nigeria Customs Service and the Federal Ministry of Finance over non-implementation is a clear sign of disarray. Governments should prioritize addressing food deficits through short-term imports while planning medium- and long-term solutions to support local agriculture.”
Economist and sustainability expert Marcel Okeke warned about the policy’s potential to harm local producers. He stated, “Allowing imports risks pricing local producers out of the market, just as we saw with the decline of the textile industry when the government opened up to imports. This could discourage domestic production and lead to an influx of substandard imports.”
Okeke emphasized the importance of self-reliance, urging the government to focus on supporting local producers. “The best approach is to grow our capacity organically, encouraging local producers to meet our needs while using imports only as a supplement,” he added.
Finance Minister Wale Edun acknowledged the concerns and assured stakeholders that the policy is under review. “We are addressing emerging issues to ensure the policy does not undermine domestic food production capacity,” he stated.
As the debate continues, stakeholders remain divided on whether the policy’s benefits outweigh its potential risks to the Nigerian economy.
