FG Moves to Crash Prices of Rice, Maize, Wheat, Other Food Items, Removes Taxes on Food Import

• The Nigerian government has removed import duties and taxes on the import of selected items
• The government said that it has granted a 150-day duty-free import window for food commodities maize, brown rice, wheat, and cowpeas
• The minister of Agriculture, Abubakar Kyari, disclosed that the Nigerian government has approved N2 trillion to tackle food inflation

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Nigerian government has given Nigerian food importers a free pass to import food into the country.

Nigeria’s minister of Agriculture and Food Security, Abubakar Kyari, said the Nigerian government has approved about N2 trillion to tackle food inflation.

FG grants free import duty window for food

The minister stated that the government had also approved a 150-day duty-free import window for food commodities, which would allow the import of some commodities via land and sea borders under the programme.

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Kyari disclosed this while briefing journalists in Abuja on Monday, July 8, 2024.

He outlined the implementation of President Bola Tinubu's Presidential Accelerated Stabilisation and Advancement Plan, a scheme to achieve food security and economic stability.

The minister disclosed that every food item has experienced price increases in the last few months.

FG removes taxes from rice, other food import

According to reports, the ministers said the government has also granted a 150-day duty-free import window for food commodities, including the suspension of duties, tariffs, and taxes for maize import, husked brown rice, wheat, and cowpeas,

He said the imported food items will be subjected to a Recommended Retail Price (RRP).

In addition, the minister disclosed that the Nigerian government will import 250,000 metric tons of wheat and 250,000 metric tons of maize, stating that the commodities will be in their semi-processed stage and will target supplies to the small-scale processors and millers across Nigeria. 

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Reports say the minister said that the federal government will engage relevant stakeholders to establish a Guaranteed Minimum Price (GMP) and mop up assorted surplus food commodities to restock the National Strategic Food Reserve and continue to ramp up production for the 2024/2025 farming season.

Prices of food items skyrocket

Nigerians have lamented the skyrocketing prices of food items such as rice, maize, and other staples.

Data from the National Bureau of Statistics disclosed that the average price of 1kg of local rice sold was N1,608.89 in May 2024, representing a 189.79% increase every year from N555.18 recorded in May 2023 and a 14.98% rice price monthly from N1,399.34 recorded in April 2024.

Also, the NBS data shows that the average price of 1kg of Garri white rose by 200.12% yearly from N371.42 in May 2023 to N1,114.72 in May 2024, where there was a 30.87% increase every month.

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“Also, the average price of 1kg of Yam tuber increased by 189.20% on a year-on-year basis from N457.25 in May 2023 to N1,322.36 in May 2024. On a month-on-month basis, it increased by 16.98% from N 1,130.37 on April 20,” the NBS Food Watch for May said.

FG moves to crash rice price, purchases 58,500 tons

Legit.ng reported that the Nigerian government had purchased about 58,500 tons of milled rice from the Rice Farmers Association to stabilise the market nationwide.

The minister of Agriculture and Food Security, Abubakar Kyari, disclosed this and said the government has asked the World Food Programme (WFP) to stop purchasing food from local markets so as not to worsen the current food scarcity.

The minister noted that the fertiliser donation from CBN would enhance food production and price stability in Nigeria.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng