Import Duties, Food Items Taxes Suspension Will Crash Prices Soon, Don’t Protest – Policy Think-tank

A policy think tank known as the Independent Media & Policy Initiative (IMPI) has said the Federal Government’s announcement of the suspension of import duties and taxes on essential food items will crash the high cost of food in a few weeks.

Therefore, the group appealed to organisers of a nationwide protest to suspend the plan and embrace peace not to disrupt the gathering momentum being built in the nation’s economic sphere, which may be counterproductive.

Addressing a press conference for the third quarter of 2024 in Abuja on Tuesday, the Chairman of the IMPI, Niyi Akinsiju, stressed that the recent waiver of import duties and taxes on food importation will make food abundantly available and affordable locally.

Akinsiju recalled that the federal government had distributed 60,452metric tons of improved seeds, 887,255metric tons of seedlings, 138 value kits, 501,726 litres of agrochemicals, 62,328.5metric tons of inorganic fertilisers, 1,000kg fungicide, and 33,200 equipment to farmers across different value chains to enhance agricultural production.

He expressed displeasure over the sub-national’s slowness to complement the federal government’s efforts to boost agriculture. He applauded state governors for investing in agriculture while urging others to join the efforts to grow the food people eat.

The IMPI boss also urged State Governors and Local Government Administrators to utilise the financial opportunity presented by the tremendous increase in their various allocations from the Federal Allocation Account to support the federal government’s exemplary efforts towards massive food production.

He said: “This flurry of President Tinubu’s interventions in agriculture has, at the last count, successfully generated a total of N309bn into the economy in one year, suggesting a resurrection of exporting activities in the agriculture sector. The recent waiver of import duties and tax on food importation will make food abundantly available and affordable locally.

“Grounded in this projection are the $20 billion foreign investment commitments the federal government secured to revolutionize the agricultural sector, in a bid to ensure food security in the country and reinvent Nigeria’s pride of place as the agricultural giant of Africa.

“Besides, the Ministry of Livestock Development creation may have opened a new vista in concerted efforts to advance agriculture. This initiative reveals the president’s true intention to harness Nigeria’s huge livestock potential, find a lasting solution to the incessant Farmers-Herders clash in the country, and reinforce the value chain that will create more employment opportunities.

“We are well aware of Nigeria’s rising year-on-year inflation, which stood at 34.19% in June 2024. This figure is primarily driven by surging food prices, culminating in higher monthly food inflation at 40.87%.

“The increase in inflation rate may have been aggravated by the depreciation of the Nigerian currency on the back of the harmonisation of the foreign exchange windows and the removal of fuel subsidy by the federal government; the twin policies that now define the structural reformation of the economy.”

The group further acknowledged the vast improvement in the nation’s foreign reserve balance, which increased from $32.29 billion in April 2024 to $37.05 billion on July 18, 2024.

“In other sectors of the economy, beginning with power, we are encouraged by the quantum leap in power generation and transmission. The industry recorded several interventions through policies and actions by the federal government. It was a remarkable feat when 700 megawatts of electricity were added to the national grid with the commissioning of the Zungeru Hydro-Electric Power Station in Niger State.

“The power sector also recorded the commissioning of two substations in Kebbi and Ajah in Lagos to consolidate the nation’s electricity distribution capacity. This has led to a considerable improvement in power supply across the country.

“We also commend the President for the payment of the historical N3.3 trillion Naira debt owed the power sector, which for years, crippled the nation’s capacity to generate, transmit and distribute the required electricity and, unfortunately, subjected the populace to the agony of endless power outages.

“By our understanding, it may be slow, it may be painful, but it is inevitable that, as a people, we will witness this upcoming period of economic upsurge and prosperity.

“Those who want to protest have the right to protest, but this must be done in the appropriate context. A protest should be anchored on substantive rationale or achievable reasons. Based on this, we appeal for patience so as not to disrupt the gathering momentum being built in the nation’s economic sphere, which may be counterproductive,” Akinsiju added.