The Nigerian government has announced plans to suspend taxes on certain food imports including wheat and maize. The tax break will last for roughly five months. The move is part of a raft of fiscal measures to mitigate the worsening food crisis which has pushed food prices beyond the reach of most citizens, and contain escalating inflation.
Food prices are rising higher and higher. Everyday the purchasing power of ordinary Nigerians grows weaker. Food inflation has climbed to over 40% year-on-year, taking even the most basic of food items beyond reach of the common man.
Insecurity in parts of the country’s food producing regions and poor road network linking farms to markets have also exacerbated the situation and deepened the worst cost of living crisis in living memory.
The government’s latest tax waiver on the importation of certain grains and and food items is part of moves to curb food shortages, stabilise prices and spur growth which has been fragile for almost a decadel
President Bola Tinubu has also asked his economic management team to prepare a N2 trillion ($1.33 billion) stimulus plan to address concerns about food supplies and pricing and bolster key sectors.
According to Minister of Agriculture and Food Security, Abubakar Kyari in a statement posted on X formerly known as Twitter, the government plans to import 250,000 metric tons of wheat and 250,000 metric tons of maize in addition to imports by the private sector. The commodities will be imported in their semi-processed state and target supplies to small-scale processors and millers.
Kyari also said the tax waiver would cover food commodities imported through the country’s land and sea borders.
But some have criticised government’s latest decision saying it will further compound the issue of local farmers who say they can not compete with the prices of imported food products.
(Editor: Terverr Tyav)
