The suspension of duty, tariff, and tax on the imports of maize, husked brown rice, wheat, and cowpea, as recently announced by the Federal Government, has raised eyebrows among some stakeholders who fear it would affect their production or businesses negatively. This policy was designed to provide relief from food inflation and ensure access to food for all. However, there are mixed reactions about it. Some see it as a timely intervention, while others are worried about its impact on local farmers and producers.
According to economic experts, increased reliance on imports may leave them vulnerable to fluctuations in international markets or political instability that can disrupt global supply chains. In addition, they warn that an increase in imports could worsen the trade balance, leading to depletion of foreign reserves and fiscal incapacity concerning critical services like healthcare delivery systems.
Increased competition from imported products could be faced by farmers and producers, which might hurt the local agricultural sector if they don’t meet pricing standards in competition with those products. The case may even become more serious, given that such trends have realistic possibilities of negatively impacting farmers’ income levels and, therefore, economic hardships.
The stakeholders are calling on the government to address root problems, like insecurity, among others, which can go a long way in enabling poor Nigerians to benefit from their intervention and support local businesses.
According to the Nigeria Customs Service, the revenue loss is estimated at N188.37 billion within that timeframe. However, this ought to stabilize and improve domestic food supply, alleviating shortages and facilitating access for lower-income families.
In implementing this policy, the government should research its impact over time to come up with sustainable measures that will shield local producers or businesses against collapse, securing a balanced strategy in achieving food security and economic stability.
