Maritime industry stakeholders have expressed frustration over the Federal Government’s failure to implement the zero duty on food import policy, three months after it was announced.
President Bola Tinubu had approved the policy, which aims to exempt selected basic food items from payment of import duties and Value Added Tax (VAT). The policy, intended to alleviate food scarcity, was scheduled to be effective from July 15 to December 21, 2024. Under the guidelines, key staples like husked brown rice, grain sorghum, millet, maize, wheat, and beans were included for duty-free imports.
However, clearing agents and importers have reported that the policy has not met its intended objectives, due to several bureaucratic hurdles. They argue that the stringent conditions attached to its implementation have derailed its purpose.
Reports suggest that the delay in rolling out the policy stems from the Federal Ministry of Finance’s failure to publish a list of importers qualified for participation, a requirement outlined by the Nigeria Customs Service (NCS) guidelines released in August. This procedural bottleneck has effectively stalled the policy’s implementation.
When contacted, the National Public Relations Officer for the Nigeria Customs Service; Abdullahi Maiwada, clarified that Customs’ role is to execute government policies as directed. “We have issued a guideline based on the approval from the federal ministry of finance. However, our role is not the only determinant in the importation process. If the necessary conditions are met and there is approval, we are obligated to implement the policy”, he said.
Dr. Kayode Farinto, former acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), criticized the handling of the initiative, emphasizing that government’s initial intentions were commendable. “The government recognized the need for food security and introduced this policy. But the implementation has been undermined, making it impossible to achieve the desired food surplus,” he lamented.
He expressed disappointment that the government’s goal to increase food availability has been compromised by the policy’s restrictive criteria. “I predicted that there wouldn’t be enough food after three months, and that’s exactly what we see now. There are conditions tied to this initiative that are preventing effective importation. For example, the requirement to own a milling company is a barrier. How do we achieve surplus food when such conditions exist?”
Farinto further pointed out the difficulty of importing food items, even when opportunities are available abroad. “I recently traveled and saw food items that could have been imported. But because of these conditions, I couldn’t bring them in. Now, after 90 days, we still face food shortages. Visit the ports, and you won’t see the intended food imports. With just N1000, one can no longer afford a decent meal.”
Mr Emeka Offor, a wheat importer shared his disappointment over the stalled initiative, which he believes was meant to ease the economic strain on Nigerians. He criticized the prolonged delay by the ministry, which has yet to provide the necessary directives for Customs to commence the programme. “How long does it take the ministry to implement a policy and instruct Customs to start? Three months have passed, and there’s no list of qualified importers. With only two months left before the policy expires, our hopes have been dashed.”
Offor highlighted the impact of the delay on food prices, suggesting that they will remain high as long as the government fails to act. He warned that inflation would continue to rise, and the naira would further weaken against the dollar, exacerbating the food crisis.
Mr Lucky Amiwero, President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), also voiced concerns about the government’s approach. He noted that other countries take more effective measures to ensure food security, urging the Nigerian government to follow suit. “The ministry of finance and related agencies are not treating this issue with the urgency it deserves. They are playing politics with people’s lives, which is unacceptable.”
Amiwero emphasized the need for a serious commitment to addressing the economic challenges, urging the government to reassess its strategies. “The current administration needs to stop playing politics with people’s lives. The situation is dire, and there is an urgent need to revive the economy and ease the tension in the country.”
He called for a collaborative approach to find solutions to the policy’s challenges, stressing the importance of resolving the issue to help mitigate the ongoing hunger crisis affecting many Nigerians.
