
The Federal Government's zero import duty policy, aimed at alleviating food inflation in Nigeria, is encountering major challenges amidst an ongoing inflation crisis.
Despite the initial announcement of a 150-day duty-free import window for essential food commodities by President Bola Tinubu, marking his one year in office, the policy has yet to be effectively implemented.

This delay is attributed to bureaucratic hurdles and disagreements among implementing agencies, as well as a lack of coordination and unclear directives.
Stakeholders have expressed concerns over the policy's effectiveness, citing underlying agronomic and infrastructural challenges. Analysts from Afrinvest have noted that both inflation and exchange rate fluctuations have undermined the policy's objectives.
Since the policy's announcement, the Naira has depreciated by more than 5.5% in the official market and nearly 10% in the parallel market, exacerbating the cost of imported commodities. The food inflation rate has surged, with a 25 basis points increase year-on-year and a 27 basis points rise month-on-month, reaching 37.8% and 2.6% sequentially.
The situation is further complicated by the economic strain on low-income Nigerians, who had hoped for relief through reduced food prices. However, the persistent inflationary pressures, fueled by energy price surges and transportation costs, continue to erode purchasing power.
As a result, many companies face potential closure due to escalating costs, and the import system is dwindling due to the government's inability to intervene effectively.
In light of these challenges, there are calls for extending the suspension period of import duties to achieve more impactful results. However, the policy's future remains uncertain as government agencies remain evasive in responding to inquiries, leaving stakeholders frustrated and without clear guidance on the implementation timeline.
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