Seven Wheat Shipments Arrive In Nigeria To Combat Rising Food Prices
By the end of October 2024, approximately 688,793 metric tonnes of bulk wheat are expected to be delivered to Nigeria’s food markets, an influx projected to ease the costs of essential food items for Nigerians. According to a report from the Nigerian Port Authority (NPA), shipments of wheat began docking at major seaports, including Apapa, Tincan, Calabar, and Rivers, between October 23 and October 30, 2024. However, inquiries about federal government involvement in the import process remained unanswered, as officials from the ministries of agriculture, finance, and customs did not respond to multiple requests.
The wheat import aligns with the Nigerian government’s recent duty-free import policy announced in July 2024, intended to mitigate food inflation by allowing a 150-day duty-free window for food commodities like wheat, maize, rice, and cowpeas. This temporary policy aims to alleviate the effects of high prices and scarcity by reducing or eliminating import duties and VAT on essential foods to stabilize consumer costs. However, despite the government’s intentions, bureaucratic hurdles and a lack of transparency have limited the policy’s impact. As of October, inflation data indicated an 8.97% increase in imported food prices since July 2024, with a year-to-date surge of 21.14%.
Finance Minister Wale Edun addressed the delays in early October, attributing them to the stop-gap nature of the import plan, designed to be temporary to protect local food production. Yet, experts have criticized the policy’s implementation, pointing out that the federal finance ministry failed to issue a list of qualified importers. Former Association of Nigeria Licensed Customs Agents president, Chief Ernest Elochukwu, argued that the government’s lack of preparedness has hampered the program’s success. Elochukwu suggested that the government should have coordinated infrastructure and qualification criteria before announcing the duty-free window.
Economist Adegboyega Adebajo echoed similar concerns, noting that the short-term policy’s effectiveness was compromised due to inadequate planning and execution. He explained that policy announcements were not accompanied by proper infrastructure to facilitate the program, emphasizing the need for foreign exchange to support large-scale imports. Adebajo suggested that establishing economies of scale through streamlined import qualification might improve outcomes for interventions like this.
The shipments of wheat and other food commodities, including 19,264 metric tonnes of feed corn delivered in October, continue arriving at Nigerian ports. While this influx could offer temporary relief, ongoing challenges in policy execution, infrastructure, and foreign exchange requirements highlight the complexities of addressing food inflation and dependency on imports within Nigeria’s economy.
