NIGERIANS may have to make do with what they can afford to celebrate the yelutide season as prices of basic food items remain high, beyond the reach of the average citizen despite import duty waivers on some food items granted by the Federal Government to tame the rising prices.

The import duty waivers granted on some food items have not achieved the intended outcomes because prices of food items continue to rise instead of coming down.

However, checks by the Nigerian Tribune have revealed that unstable forex regime, high haulage cost, high shipping cost and bureaucratic government operations have led to the failure of the Federal government food import waiver introduced in the middle of 2024.

Recall that on July 8, 2024, the Federal Government announced a 150-day duty-free import window for food commodities to ensure a reduction in food inflation in Nigeria.

The food commodities include maize, husked brown rice, wheat and cowpeas.

Indeed, five months down the line, Nigerians are yet to feel the impact of the food import waiver policy as food prices continue to skyrocket as the yuletide season approaches.

Speaking with the Nigerian Tribune, the National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Emenike Nwokeoji blamed unstable forex regime, high transportation cost and others as major reasons why Nigerians have not felt the impact of the food import waiver policy.

According to the ANLCA National President, “The major problem is the exchange rate. Even if you bring in the shipment into the country under the import waiver policy of the Federal government, the unstable exchange rate will wipe off the gains.

“When you are buying Dollar at about N1,600, no matter the waiver granted on the expected customs duty to be paid on the import, by the time you do the conversion of what you paid on freight, the gains of the waiver is gone.

“Except government gets involved in importation and start importing food, the waiver placed on food will not be felt. It’s the same thing that is happening in the petroleum industry.

“What was waived is customs import duty. There are other charges that is paid on imported food items like the shipping freight which is calculated in dollars; the terminal handling charges, transportation/haulae cost. All these cost were not waived.

“All the aforementioned costs are very high due to the high cost of diesel and our unstable exchange rate regime. Except government gets involved in importation, there is no way Nigerians can feel the impact of the policy.

“If you look at the budget presentation, security had the highest allocation, which is good for the economy. If only we can get it right in the area of security and our farmers return to their farms, there is no way we can sustain low cost of food item based on importation.

“If farmers return to their farms, we should be talking about food exportation, not importation.”

Also speaking on the food import waiver policy, a former acting National President of ANLCA, Dr. Kayode Farinto blamed the failure of the policy on its bureaucratic implementation.

“Nigerians are yet to feel the impact of the food import waiver policy due to the many bureaucratic conditions slammed on the implementation of the policy by the Federal Ministry of Finance.

“The Ministry of Finance listed some conditions for people to participate in the food import waiver policy. Conditions like ownership of a Silo or Mill; ability to produce more than 1,000 metric tonnes of rice monthly; amongst others. These conditions discouraged many importers.

“The Ministry also mandated that before any importer can bring in any food items, the Ministry must be notified. Who has this time?

“The implementation of the food import waiver policy is zero courtesy of the Federal Ministry of Finance. Until all these bottlenecks are removed, Nigerians will never feel the benefits of the food import waiver policy.

“When the policy was announced and the Federal Ministry of Finance rolled out all these bureaucratic conditionalities, I knew from the onset that the policy was dead on arrival.

“Has the foods been imported? The answer is no. If the food items have been imported, let the Ministry of Finance tell us the quantity that has come in.

“Government must look at the implementation of the policy and remove all these bottlenecks and give the policy a 90-day window where importers will be allowed to open Form-M, bring in their food import and flood the market. After 90-day, government can now close the window. If this is done, food prices will crash,” Dr. Kayode Farinto told the Nigerian Tribune exclusively.

Also, prices of food items have continued to soar beyond the reach of an average Abia and Imo resident.

According to a market survey conducted by the News of Nigeria (NAN) in Umuahia reveal that essential food items, such as rice, chicken, vegetable oil, onions, tomatoes and condiments have skyrocketed and increasingly unaffordable to many families due to persistent price hike.

At the popular Isi-gate Market, Umuahia, 50-kg bag of local rice, called foreign local, ranges from N75,000 to N106,000, depending on its grade, while the imported substitute sells for N120,000.

The same goes for vegetable oil as 25 litres costs N95,000, while 10 litres and five litres go for N45,000 and N19,500, respectively with one litre selling at N3,700.

The price of onions has also hit the rooftop as one bag goes for N300,000 at Ubani-Ibeku Ultramodern Market, as against N240,000 and N250,000 a few weeks ago.

A cross-section of buyers expressed frustration over the development, pointing out that one could no longer get N200 worth of the commodity.

Mrs Priscilla Chukwu said that many homes might prepare their Christmas stew without onions.

Chukwu said: “Before now, I couldn’t prepare any soup, especially stew, without enough onions but, today, I can only manage one bulb, which would not give my desired taste.

“The cheapest bulb of onions at Isi Gate now is N300, which is not enough for a good delicacy.

“Already, some people are cooking without onions and it may be so this Christmas. This is too bad to believe.”

Also, at the Ubani-Ibeku Market, a basket of fresh tomatoes sells for N80,000 against N50,000 and N60,000 a few weeks ago.

A carton of 50 sachets of tomato sells for between N6,000 and N7,500, depending on the brand, compared to N4,000 and N5,500 old price.

Similarly, a basket of fresh pepper sold for N50,000 before now has skyrocketed to between N70,000 and N75,000.

A pepper seller, Mrs Nneka Iroegbu, said the price would continue on the rise because of its high demand at Yuletide.

“The high cost of transportation, especially from the North, due to the hike in the pump price of fuel, is the major cause of the soaring prices of goods.

“The government should also urgently address the problem of insecurity, especially kidnapping and killing, so that farmers will return to their farms without fear,” Iroegbu said.

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