Amid escalating hunger and food insecurity, Nigeria has received a 32-ton shipment of rice from Thailand, offering temporary relief as the nation grapples with a worsening food crisis.
The shipment, the first of its kind in a decade, has arrived in Lagos, according to DUCAT, the logistics company that facilitated its delivery. The rice from Thailand was exported following Nigeria’s decision to implement a tariff moratorium on wheat, corn, rice, and other food crops last year, DUCAT revealed.
Although the duty waiver was introduced, purchases have largely been cautious, driven by concerns about its potential harmful impact on local producers.
“Nigeria has been working hard to find solutions to broaden and strengthen its food supply accessibility,” DUCAT Chief Executive Officer Adrian Beciri said in a statement. Several months ago, Nigeria unveiled a set of measures to combat soaring food inflation, which is rising at its fastest rate in three decades. In a country where nearly half of the population of over 200 million lives in extreme poverty, the government is making urgent efforts to ease the strain on its citizens.
Agriculture and Food Security Minister, Abubakar Kyari, announced on Wednesday that the government would create a 180-day window to allow duty-free imports of wheat, corn, and other critical food crops. Additionally, imported food will be subject to a set recommended retail price, aimed at controlling costs, he stated.
The government is also finalizing compliance guidelines for these new measures, which will be issued in the coming days, according to a government official.
Nigeria is facing the consequences of sweeping economic reforms introduced by President Bola Tinubu following his May 2023 inauguration. Measures such as the naira’s devaluation and an increase in electricity tariffs have sparked a wave of price hikes, pushing food inflation to a staggering 41% in May—the highest in 28 years.
The sharp rise in prices, coupled with a weakening naira, prompted the central bank to raise interest rates to a historic high.
Last month, the government indicated plans to introduce new measures to combat inflation under an initiative dubbed the Inflation Reduction and Price Stability Order.
In response to escalating food inflation, the federal government approved a 150-day duty-free import window in July last year, allowing for the importation of maize, husked brown rice, and wheat. Under this policy, Nigeria aimed to import 250,000 metric tonnes of wheat and maize to replenish the strategic grain reserve.
The policy also includes measures to set a Guaranteed Minimum Price (GMP) for key commodities, boost production among smallholder farmers for the 2024/2025 season, and encourage the production of fortified foods.
However, the approach has faced criticism, particularly from Dr. Akinwunmi Adesina, President of the African Development Bank, who has raised concerns over Nigeria’s growing reliance on food imports. He argues that this strategy undermines the country’s agricultural policy and jeopardises its economic stability.
The Sun
