Massive Food Supply Boost as Nigeria Imports Rice Under Duty-Free Policy
Nigeria has received a significant shipment of brown rice aimed at reducing soaring food costs affecting consumers. A 32,000-ton consignment, the first of its kind in a decade, recently arrived in Lagos. This delivery, facilitated by logistics company DUCAT, originated from Thailand and was made possible due to Nigeria’s temporary suspension of import tariffs on food crops such as wheat, corn, and rice, implemented last year.
Despite the import duty waiver, many importers have remained cautious about large-scale purchases, concerned about the impact on local farmers.
DUCAT CEO Adrian Beciri emphasized Nigeria’s ongoing efforts to expand food accessibility, stating, “Nigeria is actively seeking solutions to enhance and stabilize its food supply chain.”
Nearly six months ago, Nigeria announced a series of strategies to control food inflation, which has surged to its highest rate in three decades. With almost half of the country’s population of over 200 million living in extreme poverty, the government introduced a 180-day window allowing duty-free imports of essential food crops. Agriculture and Food Security Minister Abubakar Kyari also revealed that imported foods will be sold under a recommended retail price system to prevent price exploitation.
Further guidelines on enforcing the duty-free import measures are being finalized and will be released soon, according to a government official.
Economic Reforms Impacting Food Prices
Nigeria continues to face economic challenges linked to President Bola Tinubu’s reform policies since assuming office in May 2023. Key actions such as the devaluation of the naira and increased electricity tariffs have significantly contributed to price hikes, with food inflation reaching a 28-year peak of 41% in May.
The naira’s depreciation, currently the world’s worst-performing currency after the Lebanese pound, coupled with rising costs, led the Central Bank to raise interest rates to a record high. The government recently announced plans to curb inflation through the “Inflation Reduction and Price Stability Order,” focusing on controlling price surges.
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