ABUJA (Sundiata Post) – In the first quarter of 2024, Nigeria’s expenditure on food imports soared to a staggering $689.88 million.
The figure represents 17 per cent of the country’s total foreign exchange outlay for the period, marking a significant financial commitment to securing food products from offshore markets. The surge in spending reflects a 40 per cent increase compared to the previous quarter. It also underscores the growing reliance on imported food to meet domestic needs, despite Nigeria’s vast agricultural potential.
The sectoral utilisation of foreign exchange data contained in the quarterly statistical bulletin of the Central Bank of Nigeria (CBN) in the period under review, reveals that while the industrial sector took a large chunk of foreign exchange, the food product sector emerged as the second-largest importer, while the agricultural sector which is the foundation of food production, recorded the lowest foreign exchange expenditure of $35.52 million.
The government’s response to the debilitating food crisis includes a duty-free window for food imports as revealed recently by the Minister of Information, Mohammed Idris, who disclosed the government’s contemplation of food importation as a temporary cut down the prices of food commodities. He said the government has approved a 150-day duty-free window to allow the importation of maize, husked brown rice and wheat.
While aimed at curbing inflation, critics argue that importing these food commodities duty free, could undermine local production. They say what the agricultural sector needs is increased government support to boost domestic output and reduce reliance on imports.
The national president of the All Farmers Association of Nigeria (AFAN), Kabir Ibrahim, said that the duty-free importation for food items will lead to the erosion of gains made in local production of maize, rice and wheat. He called on governments to invest through the provision of subsidies on inputs such as machines, fertilizers and chemicals in order to have a sustainable food system in the country.
On Sunday however, the Minister of Agriculture and Food Security, Abubakar Kyari, stated during a TV interview on Sunday in Abuja, that the suspension of import duties on the selected food items into the country will remain in effect only until the next harvest, expected around October or November this year.
The Minister highlighted that the importation of food items is a temporary measure by the federal government to curb food inflation and will not continue indefinitely. He added that the country is expected to have a substantial harvest in the coming months, which is anticipated to reduce food prices significantly.
He further explained that the importation of these food items is as a result of the cyclical issue in farming season. According to him, the country is currently experiencing a lean season in agriculture, leading to low production and yield of certain crops in the farmlands. The Minister said this is why the federal government is resorting to specific food items to reduce the impact of these low-yield crops and high prices of staple food in the market.
“We are talking about an importation level of 300,000 to 400,000 metric tons per month for all the five crops. It will last only till harvest. It’s about October or November this year. That’s when we’re going to have the harvest. We’re expecting a bumper harvest.
“The season that we find ourselves in now is a cyclical issue that you have in agriculture. This is what you call the lean season and this is between June, July and August before the next harvest. “That is why Mr. President has decided to import rice, maize, wheat and other staple foods. As soon as all the fiscal issues have been worked out and the ministry of finance and customs have issued out the fiscal aspect of it,” Kyari said.
The increased import bill raises concerns about the country’s food security and highlights the urgent need for policies to bolster local agricultural production and reduce dependency on foreign food supplies.
Experts advocate for innovative solutions, such as leveraging the aviation sector for efficient food distribution.
An aviation security expert, John Ojikutu state that the announcement by the Ministry of Agriculture and Food Security was a positive step which underscores the government’s recognition of food security as a paramount issue.
He then proposed that given the critical role of aviation in national security, as evidenced by its effectiveness during the ECOMOG operation, a similar approach to address the current food crisis should be taken. He explained that by leveraging the aviation sector to distribute food supplies nationwide, the government can expedite relief efforts.
He suggested a temporary waiver of air navigational, landing, and parking charges for airlines engaged in food transportation, saying it would significantly reduce operational costs and that this intervention, if implemented for a six-month period, can help in addressing the nation’s food security challenges.
“I learned from the Minister of Agriculture that his Ministry is actually the Ministry of Agriculture and Food Security. That was a great thought and is great to hear especially now. Government must therefore involve aviation, a major asset for national security, in the distribution of food now as we did during the Ecomog operation with the use of civil airlines to deploy troops and logistics to Liberia and Sierra Leone at FG expenses.
“None of the airlines paid for air navigation charges between Nigeria and these countries; neither did they pay for landing and parking at the two ends. I was very much involved and in charge. Can the FG take the same responsibility now at this national security crisis period? Pay to fly food to state capitals and give concessions on air navigational, landing and parking charges. Do this for six months only,” he said.
