Over the weekend, Jet FarmsNG, an agricultural company, encouraged President Bola Tinubu to rescind the policy suspending duties, tariffs, and taxes on necessities for 150 days. This would be detrimental to the efforts of local farmers, who had to fork over millions of Naira for excessively expensive farm inputs.
Chief Farmer of Africa and CEO of Jet FarmsNG, Jerry Tobi, contended in a conversation with Vanguard that there’s no need to rush into opening land and sea borders to bring in food that the nation’s farmers are already growing and about to harvest.
Tobi said that although the implementation was haphazard, the goals were sound, therefore a careful examination of the “Federal Government’s Duty-Free Import Policy on Essential Food Items” is warranted.
He stated, “As the Chief Farmer of Africa, I am deeply concerned about the recent announcement by the Federal Government to suspend duties, tariffs, and taxes on essential food items for a 150-day period. While the intention behind this policy to alleviate food inflation and enhance food security is commendable, the approach appears to be poorly calculated and raises several critical questions that demand urgent answers.
“How did we get here? Understanding the root causes of the current food inflation crisis is crucial. Over the years, various policies and structural inefficiencies have contributed to this situation. Issues such as inadequate support for local farmers, poor infrastructure, and inconsistent agricultural policies have compounded the problem. A thorough analysis of these factors is necessary to prevent repeating past mistakes.
“What were the mistakes of the past? Identifying and learning from past errors in agricultural policy and implementation is essential. The lack of consistent support for local farmers, insufficient investment in agricultural infrastructure, and failure to create a conducive environment for agribusiness have all contributed to the current crisis. It is crucial for the government to address these issues and ensure that future policies are well-informed and effectively executed.
“Why should we still be importing despite our large farmland mass and over 40 million farmers? Nigeria’s vast agricultural resources and a workforce of over 40 million farmers should ideally make the country self-sufficient in food production. However, the reliance on imports suggests systemic issues within the agricultural sector. The government needs to focus on enhancing local production capabilities, providing adequate support to farmers, and addressing barriers that hinder agricultural productivity.
“What strategic plans has the government implemented to ensure food security? Following the President’s initial announcement of a State of Emergency on food security, it appears that subsequent actions have been inadequate. The government must provide a clear account of the strategic plans implemented to address food security and the outcomes of these initiatives.
“Transparency and accountability are crucial in assessing the effectiveness of these measures. Issues such as the land clearing of 500,000 hectares, deployment of concessionary capital/funding (like the NADF ginger fund of $1 billion for a value chain that produces over $4 billion), and the Central Bank’s role in funding the agricultural value chain need to be addressed.
“Has our strategic reserve been emptied? The current status of the national food reserves is a matter of concern. Effective management of these reserves is vital for mitigating food shortages and stabilizing prices. The government must disclose the state of these reserves and outline steps to replenish and manage them effectively.”
The CEO continued with his query saying, “What measures are in place to ensure a stable harvest season? As we approach the harvest season from September to November, it is essential to have proactive measures in place to support farmers and secure a stable harvest. This includes providing necessary inputs, ensuring fair prices, and preventing post-harvest losses. The government must detail the steps being taken to support farmers and safeguard the upcoming harvest.
“Will this policy negatively impact local farmers? The suspension of duties and tariffs might lead to an influx of cheaper imported food items, which could negatively impact local farmers who already struggle with high input costs. The government needs to address how it plans to support these farmers and mitigate any adverse effects on local agricultural production.”
“Despite the current challenges, there remains a significant opportunity for proactive measures,” said Tobi, expressing optimism that there is still time to take action to reverse the policy. Since we are still in the planting season, it is possible to clear land and grow export-oriented products like sesame seeds, rice, cowpeas, and maize, which may all be grown in July, August, and September.
“The government should strategically secure loans from the World Bank, other Multilateral Development Banks, MDBs, and International Financial Institutions, IFIs, to effectively boost local production and address the ongoing food insecurity. By investing these resources wisely, we can enhance agricultural output and move towards sustainable food security.”
In the meantime, he urged caution on the part of the government when enacting such delicate policies that are vital to the current high cost of food. According to him, importation is never the answer because other nations are safeguarding their economies and farmers; therefore, why are Nigerian farmers left out in the cold?
“While the Federal Government’s policy aims to provide immediate relief from food inflation, it risks undermining the local agricultural sector, particularly small and medium-scale industries that are thriving and on the verge of scaling up. This approach could inadvertently increase dependence on imports, thereby weakening the local economy.
“The government must exercise caution, avoiding hasty decisions that could harm the sector it intends to support. A more sustainable solution requires a well-consulted approach that addresses the root causes of food insecurity, supports local farmers, and invests in the agricultural sector. To mitigate potential negative impacts, it is advisable to reduce the duty-free period to 90 days and closely monitor the outcomes during this quarter.
“In conclusion, the government must ensure that its policies foster a robust framework for long-term food security without inadvertently harming the agricultural sector.”
