The Federal Government on Wednesday unveiled guidelines for the implementation of the “Zero Per cent Duty Rate and Value Added Tax” exemption on certain basic food items.
The guidelines followed the announcement by the Minister of Agriculture and Food Security, Abba Kyari, on the suspension of duties, tariffs, and taxes on some specific imported food items.
The food items are maize, husked brown rice, wheat and cowpea.
The intervention, which will last from July 15 to Dece,ber 31 is aimed at addressing food inflation in the country.
The move is part of the Presidential Accelerated Stabilisation and Advancement Plan aimed at achieving food security and economic stability.
Some stakeholders, however, expressed fear that it would have adverse effects on local products and businesses.
In separate interviews on Sunday, the stakeholders noted that while the policy could reduce consumer prices, local products may suffer the most.
An economic expert, David Ambi, said that farmers and producers may face increased competition from imported goods, which could harm local agriculture if they cannot compete on price.
“Increased reliance on imports can create vulnerabilities to international market fluctuations, political instability in exporting countries, or disruptions in global supply chains,“ he said.
Mr Ambi stated that if imports increased significantly, it could widen the trade deficit, thereby affecting the country`s foreign exchange reserves.
He said that that reduction in revenue could affect public funds earmarked for critical public services or infrastructure projects.
Similarly, a public analyst, Bulus Dabit , said that farmers may be worse hit by the intervention, as they may not be able to compete with international goods produced at lower costs.
He said that the situation could lead to economic challenges, particularly affecting their incomes, and urged the government to address the underlying issues that caused the situation.
A business consultant, Fife Banks, described the intervention as timely, particularly in the light of the cumulative impact of the clashes between farmers and herders in rural agrarian communities across the nation.
He, however, said that while the intervention was commendable, it was crucial for the government to seek long-term measures to protect Nigerians who have businesses in the sector from economic setbacks.
Secretary of the Small-holder Women Farmers Organisation in Nigeria, Charity Bello, said that the dollar must be regulated, and a downward review of fuel prices was necessary for the intervention to have an impact. .
“As long as the dollar is not regulated, the price of whatever is imported will not decrease. Also, if fuel costs are not regulated, the price of whatever is imported will not drop. What the government has done is not a solution for poor Nigerians. We need security on our farms.
“We used to export maize, potatoes, and other products, why should the government not take the issue of insecurity seriously,’’ she said.
The Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, announced on August 13 that the service would lose N188.37 billion in import duties during the implementation period of the intervention.
He, however, said that the suspension of the levies could encourage a higher volume of imports, which could stabilise and boost the domestic supply of these foods, thereby mitigating shortages.
He added that the policy could help combat food insecurity, particularly by ensuring that lower-income households have access to necessary