Nigeria to Suspend Import Levies on Food Crops to Ease Inflation Pressure

The Nigerian government has announced a series of measures aimed at curbing the surging cost of food.

Among the most significant steps is the suspension of import levies on key food crops, including wheat and corn, for a period of 180 days.

Agriculture and Food Security Minister Abubakar Kyari outlined the new measures in a statement released on Wednesday.

“The government is committed to stabilizing food prices and ensuring that essential commodities are accessible to all Nigerians,” Kyari said. “This temporary suspension of import duties will help increase the supply of crucial food items and alleviate some of the pressure on consumers.”

The government will also introduce a recommended retail price for imported foods to prevent price gouging and ensure that the benefits of the duty-free window reach the general populace.

Specific guidelines to enforce compliance with these measures are being finalized and will be issued in the coming days.

This move comes amid a wave of economic reforms initiated by President Bola Tinubu, who took office in May 2023. These reforms, including the devaluation of the naira and increased electricity tariffs, have contributed to the inflationary spiral, with food prices jumping 41% in May—the highest rate in 28 years.

The steep increase in prices, compounded by a weakening naira—the world’s worst-performing currency this year after the Lebanese pound—prompted the Central Bank of Nigeria to raise interest rates to a record high.

Last month, the government signaled its intention to introduce measures to curb inflation through a so-called Inflation Reduction and Price Stability Order.

Despite earlier interventions, such as the release of 42,000 tons of assorted food commodities and the purchase of 88,500 tons of milled rice, food prices have continued to rise.

“In some cases, these days, food items are becoming unavailable,” Kyari noted.

To further boost supply, the government plans to import 250,000 tons of semi-processed wheat and a similar amount of semi-processed corn. These imports will be distributed to small-scale processors and millers across the country to enhance local production capabilities.

The Nigerian government has attributed the rising food supply challenges to inadequate infrastructure, multiple taxes and levies, and profiteering by marketers and traders.

The International Monetary Fund estimates that at least 19 million Nigerians are food insecure, with the nation having the world’s largest population of citizens living in poverty after India.