Federal Government’s recent decision to implement import duty waivers on essential food items has ignited a debate among stakeholders in maritime sector. While some praise the move as a necessary step to combat rising food prices and hardship in the country, others argue that the waiver should be extended to include household items and other essential sectors.
Recall that the Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi recently announced the suspension of import duties and taxes on essential food items to make basic necessities more affordable for Nigerians and address the prevalent food inflation in the nation.
According to the Custom CG, the service will begin implementation of the duty waiver on imported food items soon. He said that the guidelines for the implementation were still being worked out at the Ministry of Finance, saying it would begin as soon as the guidelines were ready.
But, speaking with Shipping Position Daily last week, an importer at the Alaba International Market, Mr Emmanuel Arinze voiced his support for the government’s initiative, but emphasized the need for a broader approach.
Arinze highlighted the challenges faced by Nigeria in terms of local production and the heavy reliance on imports to meet the population’s needs. He acknowledged the efforts to encourage local production, but stressed the necessity of continued importation to satisfy domestic demand.
However, the Importer emphasized that the government’s waiver policy should not be limited to food items alone, but should also cover household needs, electronics, kitchen equipment, and spare parts.
Arinze pointed out that the rising cost of essential goods, including vehicle spare parts, directly impacts the transportation sector, ultimately affecting all citizens. He called for the waiver policy to be extended to virtually all sectors to ensure that the benefits reach every Nigerian.
“We appreciate the government’s action in this direction. Many of us had considered the importance of such waivers even before it was announced. While we must encourage local production, we also need to ensure that we can import enough to satisfy the needs of our people.
“The waiver should cover a range of items, so every sector feels the impact, and the masses benefit from it. High costs of spare parts and other essential goods are affecting everyone, and extending waivers to these areas could stabilize the economy to some extent.
“People are hungry, but hunger is not the only challenge we face. In this critical time, every sector is very important. No sector should be neglected. I support the idea of extending the waiver, and I urge the government to do so as quickly as possible” Arinze concluded.
In contrast, a Chieftain of the Importers Association of Nigeria (IMAN), Ayopade Omolale voiced his support for the Federal Government’s decision to implement a waiver on food items, arguing that such a policy is essential to address the pressing issue of food affordability in Nigeria.
Omolale however cautioned that while the waiver on food items is necessary, extending it to other imported goods would lead to a significant reduction in government revenue, which could have long-term negative consequences.
Speaking further, Omolale emphasized the importance of ensuring that government revenue is used effectively for the benefit of the people, stressing that the current focus should remain on food items. He explained that the waiver would help reduce food prices in the market, which is crucial in a country where hunger has sparked public protests.
“In my opinion, food items are more important than any other items. The government’s waiver on food items is a move I fully support. The recent hunger protests underscore the urgency of making food more affordable. If the government can subsidize and waive taxes on imported food like rice, it will ultimately lower the cost of foodstuffs in the market, Omolale said.
Also speaking, a chieftain at the National Task Force on Small Arms and Light Weapons, Major Segun Ibikunle (Rtd) expressed concerns about the potential long-term economic implications of the waiver while emphasizing the importance of maintaining a balanced approach to foreign exchange and trade.
Addressing concerns about the potential impact on government revenue, Rtd Major Ibikunle highlighted the potential risks to Nigeria’s currency, explaining that the loss of revenue from import duties could weaken the naira. He however warned against extending these waivers to other imported goods without careful consideration.
“The government is currently focused on providing much-needed foreign exchange to balance food and other activities. Ideally, what we import should be less than what we export to ensure a healthier economy. If the economy is healthy, everyone benefits in the long run.
“If anyone is asking for waivers to be included for other items, they must prove that those items are necessary to put food on the table for the masses. As responsible importers, we should not act out of selfish interests. We must look at the big picture and act in ways that benefit not just us, but the entire country.
“Our export activities and earnings are crucial to strengthening our currency. If we continue to waive duties, we should expect the currency to lose value, even if food prices go down. This is the trade-off we must be mindful of” Ibikunle concluded.
