Nigeria drafting guidelines for import duty waiver on food items

The Nigerian government has taken a significant step in addressing the ongoing issue of food inflation by initiating the drafting of guidelines that would allow the suspension of customs duty and taxes on imported food items. This move is aimed at increasing the availability of essential food commodities in the market and driving down prices to make them more affordable for consumers. Debajyoti Bhattacharyya, Vice President Commercials at AFEX, shared insightful perspectives on the potential impact of these measures in a recent interview on CNBC Africa. With the current scenario presenting challenges in the supply chain for processors and farmers, the import duty waivers could provide a much-needed solution to bridge the gap between supply and demand. According to Bhattacharyya, the key considerations in drafting these guidelines involve striking a balance between short-term requirements and medium-term aspirations to control inflation effectively. The importance of timely imports to stabilize prices and prevent market distortions was also highlighted during the discussion. The interview shed light on the timeline for the implementation of the import duty waivers and the anticipated impact on food prices in the coming months. While the government's decision to allow imports of essential commodities is expected to reduce the gap between local and import prices, Bhattacharyya emphasized the need for strategic management to avoid market disruptions and support local farmers. The focus remains on creating a win-win situation for all stakeholders involved, including processors, farmers, and consumers. By providing liquidity support and critical infrastructure services, AFEX aims to facilitate trade and mitigate risks for market participants, ensuring the sustainability of the local food supply. The ultimate goal of these measures is to combat food inflation and stabilize prices for essential food items. With the potential for a significant reduction in prices, particularly for maize and paddy rice, the import duty waivers offer a promising opportunity to alleviate the burden of escalating food costs on the Nigerian population. As the government works on finalizing the guidelines, the industry awaits the implementation of these measures with cautious optimism, hoping for a positive impact on food inflation and market dynamics.