Pros and Cons of Interim Measures against Food Crisis

Amid the introduction of a raft of measures to address the rising cost of food items and the corresponding uproar in the nation, Festus Akanbi argues that the government will be postponing the evil days if urgent measures are not taken to make agriculture attractive through the implementation of a well-thought-out plan that will stand the test of time

In a manner that suggests that the federal government is overwhelmed by the ravaging hunger and the attendant tension in the land, the current administration last week announced some quick-fix decisions which have continued to ruffle feathers.

The week opened with the announcement of a 150-day duty-free import window for food commodities by the federal government as it stepped up efforts to tackle rising inflation which had impoverished many Nigerians. 

The government also expressed its decision to collaborate with states to expand land cultivation across the country.

While the modalities for the planned waiver for food import were still being discussed, the federal government also approved the distribution of 60 trucks of fertiliser to each of the states.

Part of the arrangement includes the allocation of two trucks of fertiliser to each of the 109 senators for onward distribution to the farmers in their senatorial districts while the 360 members of the House of Representatives will each get one truck to distribute in their constituencies.

And in what looks like his answer to the recurring farmers/herders clash across the country, President Bola Tinubu, on Tuesday announced the plan to establish the Federal Ministry of Livestock Development in a move expected to end the perennial clashes between pastoralists and farmers.

150-day of Duty-Free Importation

Interestingly, the government had earlier ruled out the importation of food as part of strategies to address the high costs of foodstuffs and the economic hardship troubling the country but the Minister of Agriculture and Food Security, Abubakar Kyari, who unveiled the new measure on Monday, said that 150 days of duty-free imports would be valid for commodities including maize, husked brown rice, wheat, and cowpeas. 

The initiative which is part of the Presidential Accelerated Stabilisation and Advancement Plan would also enable the federal government to import 250,000 metric tonnes of wheat and 250,000MT of maize. 

He explained that the imported food commodities in their semi-processed state would target supplies to the small-scale processors and millers across the country. 

Kyari said: “To ameliorate food inflation in the country caused by affordability and exacerbated by availability, the government has taken a raft of measures to be implemented over the next 180 days.

He further states: “This includes a 150-day duty-free import window for food commodities, suspension of duties, tariffs, and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat, and cowpeas. Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price.”

Referring to the concerns from certain quarters over the health implications of the importation of food items, the minister said, “I am aware that some good citizens might be concerned about the quality of the would-be imported food commodities as it relates to the trending worries around the genetic composition of food. I am glad to reiterate that the government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.” 

The minister admitted that prices have continued to escalate, and in some cases these days, food items are becoming unavailable, saying the government cannot allow this situation to persist. 

He described the recent measures as a stopgap to take care of the time lag between cultivation and harvest. 

“For instance, harvest for 2024 wet season farming will not be due until October-November. On the one hand, while the measures aim to alleviate immediate food shortages, we will strengthen domestic production capabilities to enhance long-term food security,” the minister added. 

Nigerians have battled high food prices since the president announced the removal of petrol subsidies and also floated the naira so the value of the Nigerian currency can be determined by market forces in 2023.

Senate Wades in

In wading into the issue of food crisis in the country, the Senate while debating on the food crisis at plenary on Tuesday, called on the Federal Government to expedite action on the fertiliser distribution. 

According to Senator Ahmad Lawan Nigeria could be facing a food crisis, alleging that the country’s food reserves were empty.

Ministry of Livestock Development

The president, who hinted at creating a new Ministry of Livestock Development, said the effort will, among many benefits, curb decades of gory clashes between herders and farmers. 

He also inaugurated the Presidential Committee on Implementation of Livestock Reforms, expressing readiness to implement recommendations on ranching and other livestock reforms to enhance the economy. 

The President, who chairs the committee, also appointed a former chairman of the Independent National Electoral Commission, Professor Mahmud Jega, as co-chairman.

Criticisms

However, critics said the creation of a new ministry is misplaced, saying there was no need to create another bureaucracy with its attendant financial implications.

A former Director, of the Federal Ministry of Agriculture, Dr. Akin Fapohunda, said the decision was strictly political and not based on consideration for agriculture.

Fapohunda, who spoke on an Arise News programme on Wednesday, said a serious government would have come clean on plans to help herders, saying Nigeria does not have the resources to fund a new ministry now. 

He said the problems on the ground far outweigh the current ad-hoc policies being rolled out by the current administration, saying the government has deviated from its initial promises.

But the National President, of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said while the move would help arrest food inflation, it might end up weakening the country’s agricultural sector. 

He advised: “It will be wise if government at all levels can declare a state of emergency in our food sector and put all hands on deck to stimulate and intervene proactively in the sector.  We should be able to produce what we eat and eat what we produce.  That is the only sustainable food model.” 

Reacting to the federal government waiver of levy for food importation, the Lead Chair of the EU Africa Business Taskforce Summit, Prof. Ken Ife said there was nothing wrong in the decision to allow more imported food into the country at this critical time.

Ife who spoke on ARISE NEWS Channel, said the action should be seen as a stop-gap to meet the state of emergency in the food sector.

He explained that the 150-day grace is coming at a time when Nigerian farmers are busy planting and that the federal government initiative would not affect farmers.

He advised the federal government, to as a matter of urgency, build food reserves as a buffer in the face of the incessant food crises in the land.

Another analyst who spoke under the condition of anonymity said the government’s intervention was long overdue. She recalled that Egypt which faced a similar high cost of food recently introduced a subsidy on bread, a staple food, and the measure was able to bring relief to the people.

She said the recent imposition of a 70 per cent duty on wheat by the federal government does not make sense given the fact that Nigeria relies heavily on the importation of wheat,

In its 2024 outlook, the international financial advisory firm, PricewaterhouseCoopers Nigeria(PWC) said poverty levels in Nigeria are projected to increase to 38.8 this year.

The report noted that consumer spending may be pressured in 2024 due to rising prices of goods and services (increasing food and transportation costs) and lower disposable income. However, private consumption is expected to be marginally better than in 2023.

Similarly, the International Rescue Committee (IRC) and its partners said that around 16% of Nigerians will face severe food insecurity or hunger between June and August 2024.

The figure for 2024 is higher when compared to the report for 2023 and denotes the increasing spate of hunger and the worsening living conditions across not just Nigeria but West and Central Africa.