FG Lifts Tariffs, Taxes on Imported Foods to Tackle Hunger Crisis
In an effort to combat rising food prices and ensure food security, the Federal Government of Nigeria has announced the suspension of tariffs and taxes on imported food items.
Abubakar Kyari, the Minister of Agriculture and Food Security, delivered the announcement in a press statement on Monday, July 8, 2024, describing it as a response to the escalating cost of food items across Nigeria.
“Over the past several months, we have all been witnesses to the escalating cost of food items in all parts of the country. There is virtually no food item that has not had its price raised to a level higher than what many Nigerians can afford,” Kyari said.
Nigeria is witnessing one of its worst economic crises in recent years, with food inflation rising to 40.66 percent, according to the latest data from the National Bureau of Statistics (NBS). The rise in food prices has eroded the purchasing power of citizens, putting over 31 million Nigerians at risk of acute hunger.
In response to the growing concerns over food prices, Kyari assured Nigerians that the government is taking steps to address the issue.
“We have heard the cries of Nigerians over the prices of food items and condiments, with some now describing tomato as gold and proposing a variety of recipes to prepare soups and dishes with some of the overly priced food items,” he said.
“What in the past were regarded as common items such as yam, plantain, and potato now command excessively high prices, and Nigerians are right to wonder how and why things are the way they are.”
What The Government Is Doing To Lower Cost Of Imported Foods Aside Lifting Taxes
To mitigate the high prices, the government will introduce a recommended retail price (RRP) for imported food commodities.
RRP is the price at which a product manufacturer suggests retailers sell their products. The purpose of the RRP is often to standardize the price of a product across different stores and locations.
“I am aware that some good citizens might be concerned about the quality of the would-be imported food commodities as it relates to the trending worries around genetic composition of food,” the minister said.
“I am glad to reiterate that the government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.”
In addition to allowing the private sector to import food, the government will import 250,000 metric tonnes of wheat and maize. According to Kyari, these semi-processed food commodities will be supplied to small-scale processors and millers across the country.
Also, the government plans to collaborate with relevant stakeholders to set a guaranteed minimum price (GMP) and purchase surplus food commodities to restock the national strategic food reserve. Kyari also emphasized the government’s commitment to increasing production for the 2024/2025 farming cycle.
