FG’s Bold Plan To Slash Food Prices Crumbles Under Soaring Costs

FG’s Bold Plan To Slash Food Prices Crumbles Under Soaring Costs

The Federal Government’s ambitious plan to cut food prices through a zero-duty policy and value-added tax exemptions on key food items is facing serious setbacks, as the average price of imported goods soared to an alarming 878.3 price point index in September 2024.….CONTINUE READING 

This price surge highlights broader economic challenges that have hindered the government’s ability to curb food inflation.

Back in July 2024, the government introduced a 150-day duty-free import window for essential food commodities, such as maize, husked brown rice, wheat, and cowpeas, to combat food scarcity and price hikes. However, almost three months later, the plan has yet to be implemented due to delays, including the Ministry of Finance’s failure to release the list of qualified importers, as outlined by Customs in August.

During a recent briefing, Finance Minister Wale Edun confirmed that maize and wheat imports were ordered to help stabilize the food market. Despite this, the anticipated policy rollout has been delayed, and food prices continue to rise.

The National Bureau of Statistics (NBS) recently reported a significant 30.6-point increase in the price index for imported foods between August and September 2024, reflecting an 8.97 percent increase since July, when the duty-free initiative was first introduced.

Year-to-date, imported food prices have surged by 26.81 percent, highlighting Nigeria’s growing dependence on foreign food supplies amid domestic production shortages.

Inflation has been a persistent issue throughout the year, with imported food inflation rates increasing from 26.29 percent in January to 34.83 percent in May.

In the second quarter of 2024, the Central Bank of Nigeria (CBN) allocated N547.7 billion ($823.19 million) to support food imports, marking a 20.6 percent decrease from the first quarter’s N689.88 million allocation. Over the past six months, the CBN has disbursed a total of N1.73 trillion for food imports.