·Stakeholders react to 150 days' window on importation
Nearly two months ago (July 8), the Tinubu administration decided to lift tariffs on the importation of certain food commodities through land and sea borders.
The implementation is to last 150 days and the aim is to crash high food prices that have made life rough, tough and unbearable for Nigerians since President Bola Tinubu was sworn in on May 29, 2023.
The grains approved by the Federal Government for importation include maize, husked brown rice, wheat and cowpeas.
The arrangement is expected to operate under a Recommended Retail Price regime.
The August 1-10, 2024 nationwide protests, tagged 'EndBadGovernnance' and carried out under the slogan, 'We dey hungry', were majorly triggered by the frustration Nigerians had experienced as a result of crushing food prices.
On the heels of nearly two months of the lifting of tariffs on imported rice, maize, wheat, and cowpea, Sunday Vanguard spoke to some stakeholders about the impact of the arrangement. They expressed mixed reactions.
There are slight downward changes in prices of affected commodities - AFAN President
The President, All Farmers Association of Nigeria, AFAN, Ibrahim Kabir, said, "There are slight downward changes in prices of the affected commodities, but we can generally refer to the issue as still work in progress because it requires a little more time to manifest.
"I understand this policy to be essentially targeting private sector participation since tariffs and taxes are being lifted because government does not pay taxes or tariffs to itself.
"The companies able to take the opportunity in the window are already processing imports, so it is not lip service at all.
"But addressing sustainable subsidies on inputs, stemming or taming insecurity, more investments in Agriculture to make the Small Scale Producers, SSPs, to scale their productivity will ensure sustainable sufficiency and thereby bring down prices.
"The importation for a given period and define quanta is certainly STOP GAP."
However, he counseled the Tinubu administration and state governors on food production: "Both the Federal Government of Nigeria and the sub-national leadership should converge in unison to incentivize the farmers to produce optimally in order to attain food security."
Importers, producers alike slow to respond possibly due to uncertainties in the market - EA Daniels Farms CEO
The Chief Executive Officer, CEO, EA Daniel Farms, Daiel Ijeh, also shared his perspective, suggesting that the prices of the grains have remained stubbornly high two months into the policy implementation as importers and producers alike have been slow to respond possibly due to uncertainties in the market and the temporary nature of the regime.
"Despite the Federal Government's decision to lift tariffs on rice, wheat, and maize for 150 days, the anticipated benefits in terms of food supply and price reduction have not materialized", Ijeh said.
"The move, which was intended to ease importation and stabilize the market, has yet to yield significant improvements. In many markets, prices for these staple foods remain stubbornly high, and in some cases, they have even increased.
"This suggests that other factors, such as supply chain disruptions, currency depreciation, and high production costs, may be undermining the effectiveness of the tariff suspension.
"Additionally, the expected surge in food supply following the tariff lift has not been realized. "Importers and producers alike have been slow to respond possibly due to uncertainties in the market and the temporary nature of the policy.
"As a result, consumers are still facing food scarcity and elevated prices, particularly in rural and underserved areas.
"The tariff suspension, while a step in the right direction, has so far proven insufficient to address the broader challenges affecting food security in the country.
"Since the objectives have not been met, one can say that it is unintelligent and also inadequate to address our problems both in the short and long terms.
"In addition to lifting tariffs on rice, wheat, and maize, government should simultaneously address the underlying structural issues affecting agricultural productivity and food distribution in the country.
"One major issue is the inadequate infrastructure, including poor road network which significantly increases the cost of transporting food products. By improving this area the government could help reduce post-harvest losses and ensure that food products reach markets more efficiently, ultimately lowering prices and increasing availability.
"Another critical area is the support for local farmers through PPPs to provide extension services at local government levels. Strengthening local production would reduce the country's reliance on imports and shield it from global market fluctuations. "Furthermore, addressing issues such as land tenure insecurity, access to credit, and market access would empower smallholder farmers to contribute more effectively to the national food supply, leading to more stable prices and improved food security.
"Addressing land tenure issues and allocating agricultural programs and projects to local governments through Public-Private Partnerships (PPP) would be a more strategic approach to improving food security and reducing prices. Land tenure insecurity has been a significant barrier to agricultural productivity, particularly for smallholder farmers who lack clear ownership rights.
"By reforming land tenure systems to provide farmers with secure and legally recognized land titles, the government would empower them to invest in their land, adopt better farming practices, and increase production. This would not only enhance food supply but also create a more stable and efficient agricultural sector.
"Moreover, decentralizing agricultural programs and projects to local governments through PPP agreements would ensure that interventions are more tailored to the specific needs of each region.
"Local governments, in collaboration with private sector partners, could implement targeted programs that address the unique challenges of their communities, such as improving irrigation systems, providing access to affordable inputs, or establishing local processing facilities.
"This localized approach would foster innovation, attract private investment, and ensure more effective implementation of agricultural policies, ultimately leading to a more resilient and productive agricultural sector.
"Our journey to food security starts from the acknowledgment by state governments and local governments that our land tenure system is inimical to agricultural productivity. Urgent Reforms are needed here. Infrastructure that supports agricultural production is equally essential."
It's a fire brigade approach - FACAN Chairman
The Chairman of the Board of Trustees of the Federation of Agricultural Commodity Associations of Nigeria, FACAN, Dr Victor Iyama, on his part, said, "Has the rice itself started coming in? And if the rice has started coming in, we will know the impact, but it is too early to know the impact. As far as I am concerned, it is a fire brigade approach, but then government doesn't seem to have a choice other than ply that route.
"A more permanent solution is for us to ensure that for those three-four-month crops, we should acquire more lands and establish more farms. I have said that there should be direct farming. There are many people who are ready for training and some have been trained. We need farm settlements, and put up one-bedroom flats in those farm settlements; we plough, plant and distribute five to 10 hectares and they will be there.
"The people in the farm settlements would own the farms, and once they harvest and sell their produce, they pay a little back from the money used in establishing the place so that more people can benefit and that is the way to go and be the standard.
"We must have farm settlements established with the support of the private sector. This is not going to be like the Anchor Borrowers Scheme. This is direct farming, we should build the facilities, including ranches; with adequate security provided by security agents."
Holistic approach, not a hasty decision, will impact positively - HOMEF ED
The Executive Director, Health of Mother Earth Foundation, HOMEF, Nnimmo Bassey, also speaking, asserted that the decision is hasty, saying the move to reduce food scarcity is not holistic as far as there are other issues that need to be addressed for effective impact.
Bassey said: "Lifting of tariffs on certain imported foods could be expected to lower the cost of the items in the market if there is matching or reasonable supply of locally produced ones.
"Low food prices would definitely impact the lives of Nigerians because food would be available.
"But it could also have negative impact if the imported food is of poor quality or is a transgenic product. The drive to have food in the market must never lead to lowering of regulatory standards.
"Some of us believe that where there is an emergency, the best reaction is not to panic, but to carefully examine the situation before taking action.
"I wouldn't characterize the lifting of tariffs as propaganda, but as a hasty decision in an effort to reduce food scarcity. And whether such a move would lead to reduced prices is debatable.
"Tackling high prices or scarcity of food items requires holistic responses. These must include social, economic, ecological, cultural and political considerations.
"It has been said over and over again that one of the challenges with our agricultural production is insecurity on the farms.
"Another is the hype over chemical fertilizers which have become political tools and their negative impacts on soils are ignored.
"Long term solutions include training and deployment of agricultural extension officers. This cannot be avoided.
"We need strict enforcement of regulations regarding what varieties of rice, maize, wheat and others are allowed into Nigeria.
"Genetically modified varieties should be kept out and hunger should never be a reason to permit risky foods.
"In any case, current biosafety regulatory guidelines require that those who wish to import GMO foods, or even feeds, should expect to go through a process that could take up to 270 days before their importation.
"They must also have NAFDAC clearance for approval. The 150 days window on tariffs should thus not provide a cover for surreptitious importation of such foods.
"Seeds donated by external agencies also require close examination before they are given to farmers displaced by insecurity.
"One more thing that requires serious consideration is the lack of infrastructure including rural roads for moving the harvests to the markets and ensuring farmers good farm gate prices.
"With poor access to the farms, hapless farmers are selling their products at giveaway prices and thus remain impoverished.
"Investing in research and development of appropriate technologies to assist our small scale farmers should be a priority rather than importation of tractors and other equipment that would only benefit industrial farmers".
His advice to Tinubu: "Take food production as a critical and top-range matter. Understand that 70 per cent if not more of national and global food production is by small-scale farmers, most of whom are women.
"Mount a nationwide campaign to support and upscale food production by supporting small-scale farmers.
"Adopt agroecology as a way of securing our food sovereignty, building our soils and cooling the planet.
"Create centres of excellence for the study and popularizing of agriculture that works with nature.
"Fund our research institutions to produce appropriate tools for our farming systems; provide affordable access to credit to our farmers.
"Re-establish agricultural produce marketing boards and introduce price controls in favour of our farmers. Predictable income for farmers will encourage youths and others to go into farming; and ban GMOs."
Nigerians still bearing brunt of economic hardship - ActionAid Country Director
The Country Director, ActionAid Nigeria, AAN, Andrew Mamedu, also spoke.
Mamedu said, "The Federal Government's decision to lift tariff on the commodities for 150 days may have been a well-intentioned move to alleviate the escalating food costs and hunger crisis in the country, particularly for the poor who struggle to afford even one meal a day.
"This gesture may have been aimed at providing relief to vulnerable populations who are bearing the brunt of the economic hardship.
"However, ActionAid Nigeria has reservations about the structure that the government has put in place to regulate this effect. Despite the tax exemption, private food distributors may still increase prices due to the already grasping economy and inflation in the country.
"So, although the cost of imports may reduce due to the lifting of the tax, the prices will not be affected. As we see today, the cost of imported foods is still high.
"Furthermore, we worry that this relief is temporary and may not lead to sustainable solutions, such as the underlying structural issues driving food insecurity.
"The surge in imported grains may also have devastating consequences for local farmers, who cannot compete with cheaper imports, potentially causing poverty and inequality.
"This could lead to a decline in local food production, further entrenching the country's reliance on imports and undermining efforts to achieve food self-sufficiency.
"We can't dismiss the possibility that the government's move is a genuine attempt to address food costs, but even if it is, it's unlikely to have a lasting impact without concrete actions.
"Food insecurity will continue to drive up prices. To make a real difference, we need to see substantial investments in local agriculture and a reduction in fuel prices to decrease transportation costs, ultimately helping to combat high food costs.
"Lifting of the ban on tariffs is a good measure, however, we believe that it is not standalone. There are other structural and sustainable measure that the government should have put in play to make sure that food is assessable, even to the poor.
"They are: Regulating actual market prices - it is not enough for the government to remove the ban alone. Nigeria still battles with inflation, and so, citizens will try to make more money for themselves. Due to this, food distributors may not affect the price reduction on imported foods.
"Fund Agriculture - Nigeria's agricultural sector receives less than two per cent of the national budget, hindering support for local farmers and investment in essential infrastructure. This will in turn make food expensive and unaffordable for Nigerians.
"Food Insecurity - This remains a persistent challenge in Nigeria, affecting millions of people's access to food. This issue is worsened by inadequate agricultural funding, poor infrastructure, limited access to credit for smallholder farmers, climate change, and even threats to the lives of farmers on their farmlands. As a result, food costs remain high, and distribution and accessibility are severely impacted".
Mamedu counselled the federal and state governments: "Nigeria's agricultural sector is severely underfunded. To address this, the government should increase the agricultural sector's budget allocation to at least 10 per cent of the national budget.
"This would enable them to invest in essential infrastructure such as irrigation systems, roads, and storage facilities, as well as provide credit facilities and financial support to smallholder farmers.
"Furthermore, government could promote public-private partnerships to boost investment in agriculture and provide support for research and development to improve agricultural productivity and efficiency.
"Government should develop and implement a comprehensive food security policy that addresses the root causes of food insecurity.
"This could involve investing in climate-resilient agricultural practices and research, improving access to credit and financial services for smallholder farmers, and enhancing farmer extension services and training programmes.
"Additionally, the government should support conflict resolution and security initiatives to protect farmers and their farmlands and develop effective food distribution and storage systems to reduce post-harvest losses and ensure that food reaches those who need it most."
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Despite removal of tariffs, rice, others remain expensive - Jet FarmsNG CEO
The Chief Farmer of Africa and Chief Executive Officer, CEO, Jet FarmsNG, Jerry Tobi, pointed out that despite the lifting of tariffs and taxes on rice, wheat, maize and others, the commodities are still very expensive.
Tobi said: "The lifting of tariffs on rice, wheat, maize, and other grains was intended to reduce food prices and ease the burden on Nigerians.
"However, the impact has yet to be felt. Despite the removal of these tariffs, staple foods like rice remain expensive. For example, I still bought rice at a price showing no significant reduction.
"This raises concerns about the government's strategic approach to policy implementation. When policies are made, they need to be part of a sustainable environment where one policy doesn't inadvertently undermine another. So far, the expected benefits of the tariff removal have not materialized, which is disappointing.
"We hope it is not merely lip service. The Nigeria Customs Service has confirmed the removal of tariffs on selected products, which is a positive step if the government is indeed allowing a greater influx of imported goods.
"However, we need to see concrete data on the volume of these goods entering the market and the corresponding demand. Only then can we assess whether the increased supply is sufficient to drive down prices?
"The government must provide data-backed monitoring and evaluation to ensure this policy achieves its intended goals. A key question remains: Does the government truly understand the demand for rice, wheat, and maize needed to curb food inflation? "Without this understanding, the policy may cause more harm than good, particularly for local farmers and food processors.
"Instead of focusing solely on tariff removal, the government should address the root causes of the food crisis.
"Issues such as insecurity, high input costs, insufficient investment in agricultural finance, and poor logistics due to fuel prices and bad roads are critical.
"Government should strategically focus on the challenges by ensuring security on our farms, encouraging cluster farming by developing at least 1,000 hectares per Local Government Area, LGA, clearing land to make it arable, and reallocating fuel subsidies to inputs like fertilizers, pesticides, and tractors.
"Prioritizing local production is key, and the government should also expedite the recapitalization of the Bank of Agriculture, BOA, and development finance at the Central Bank of Nigeria, CBN.
"My advice to President Tinubu is to gather a team of 'right and sincere' individuals to advise on food security.
"Revisit the July 13, 2023 State of Food Emergency address and focus on the 5th and 6th points regarding CBN funding for the agricultural value chain and the plan to clear 500, 000 hectares for full-scale mechanization.
"If I were the Minister of Agriculture, I would advocate for collaboration between state commissioners, governors, and the Federal Government to develop 1,000-5,000 hectares per LGA, depending on capacity.
"The focus should be on key staple commodities, with the Federal Government supporting land clearing as a subsidy, state governments providing inputs (fertilizers, pesticides, seeds), and LGAs offering extension officers and farmer advisors.
"Each state should concentrate on its comparative advantage crops. If this synergy is achieved, we could see a quick turnaround in food prices.
"The main reason for high food prices is low production, and by strategically increasing food production with the aid of technology and investing in young, smart food producers, we can address this issue effectively."
QUOTE: Importers and producers alike have been slow to respond, possibly due to uncertainties in the market and the temporary nature of the policy
