The federal government’s zero import duty policy, aimed at reducing food prices for low-income Nigerians, has encountered fresh obstacles. Lack of coordination, unclear directives, and underlying agronomic and infrastructural challenges are major hurdles, according to stakeholders ¹. This setback comes as Nigeria’s inflation rate continues to surge, reaching 33.95% in May 2024, up from 22.4% in May 2023.
Key Challenges:
- Lack of Coordination: Government agencies are struggling to implement the policy due to role conflicts.
- Unclear Directives: The Ministry of Finance’s delayed issuance of relevant directives caused a two-month delay.
- Revenue Concerns: The Nigeria Customs Service estimates the federal government will forgo N188.4 billion in revenue over the five-month duty waiver period.
Inflationary Pressures:
Nigeria’s inflation rate peaked at 34.19% in June 2024 and, despite a brief decline, rose to 32.7% in September, indicating ongoing hardship ¹. President Bola Tinubu’s 150-day duty-free import window announcement aimed to alleviate food inflation, but progress has been slow.
Expert Insights:
Analysts at Afrinvest question the policy’s effectiveness, citing Nigeria’s agronomic and infrastructural challenges ¹. The delay in implementation has allowed inflation and exchange rates to override the policy’s intended benefits.
