The Nigerian government has implemented a series of actions aimed at reducing the prices of staple foods such as rice, maize, and wheat. The Minister of Agriculture and Food Security, Abubakar Kyari, announced several key measures during a press briefing in Abuja on July 8, 2024.
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Tax and Duty Relief for Food Imports
One of the central components of the government’s strategy is the removal of import duties and taxes on certain food items. This includes a 150-day duty-free import window that will allow food commodities such as maize, brown rice, wheat, and cowpeas to be imported without the usual tariffs and taxes. This exemption applies to imports through both land and sea borders.
N2 Trillion Funding to Combat Food Inflation
The government has also earmarked a substantial N2 trillion fund as part of its Presidential Accelerated Stabilisation and Advancement Plan, led by President Bola Tinubu. The plan focuses on achieving food security and economic stability by tackling the high food inflation rates that have burdened the country.
Strategic Food Reserves and Guaranteed Minimum Prices
In addition to tax relief, the government plans to import 250,000 metric tons each of wheat and maize. These imports will predominantly be in their semi-processed form to aid small-scale processors and millers throughout Nigeria. Furthermore, the government intends to engage with relevant stakeholders to set up a Guaranteed Minimum Price (GMP) for food items and to mop up surplus to restock the National Strategic Food Reserve.
Current Food Price Trends
Recent data from the National Bureau of Statistics highlights the urgent need for these measures. As of May 2024, the price of 1kg of local rice had surged by nearly 190% compared to the previous year, reaching N1,608.89. Similarly, the price of Garri white and yam tuber has seen dramatic increases, signaling a steep climb in the cost of basic food supplies.
Government Purchases and Market Stabilization Efforts
To further stabilize the market, the Nigerian government has purchased approximately 58,500 tons of milled rice from the Rice Farmers Association. This move is intended to impact rice availability and prices across the nation directly. Additionally, the Minister requested the World Food Programme to halt local market purchases to avoid exacerbating the existing food scarcity.
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Support for Increased Food Production
Finally, the government’s strategy includes support for increased food production. A notable initiative is the donation of fertilizer from the Central Bank of Nigeria (CBN), which aims to boost crop yields and contribute to overall price stability.
