About 688,793 metric tonnes of bulk wheat are scheduled for importation to food markets across Nigeria by the end of October 2024. This significant influx is anticipated to help lower food costs and make essential products more affordable for consumers.
The wheat, loaded onto seven vessels of varying sizes, began arriving at four seaports between October 23 and October 30, 2024, as reported by the Nigerian Port Authority. The ports involved include Apapa and Tincan in Lagos, Calabar Port in Cross River State, and Rivers Port in Rivers State.
Efforts to determine whether the Federal Government was involved in the wheat imports were unsuccessful, as inquiries to the ministries of agriculture and finance, along with the Nigerian Customs Service, went unanswered.
On July 8, 2024, the government announced a 150-day duty-free import window for food commodities, including maize, rice, wheat, and cowpeas, aiming to mitigate food inflation in Nigeria. This initiative was intended to alleviate the effects of various factors contributing to food scarcity and rising prices by reducing or eliminating import duties and value-added tax.
However, the program has not met its goals due to bureaucratic hurdles and the Federal Ministry of Finance’s failure to publish a list of qualified importers. At an inter-ministerial press briefing on October 1, 2024, Finance Minister Wale Edun stated that the government had initiated a temporary measure to import wheat and corn, emphasizing that these imports were not intended to disrupt local food production.
Despite the announcement, data indicates that imported food inflation rose by 8.97% from an average price index of 806.0 in July 2024 to 878.3 in September. Year-to-date figures show an increase of 21.14% from 692.6 in January 2024, reflecting growing reliance on foreign food products amid domestic supply shortages.
The Central Bank of Nigeria has also allocated ₦1.73 trillion for food imports in the first half of 2024. According to the Nigerian Port Authority, the first two vessels carrying 44,946 metric tonnes were scheduled to arrive at Rivers Port on October 23, followed by another vessel with 18,800 metric tonnes at Calabar Port on October 24. Additional vessels are expected at Tincan Port and Apapa Port on subsequent dates.
Preliminary findings indicate that about five vessels have already offloaded bulk wheat at Apapa, Tincan, and Calabar ports between October 2 and 18, 2024. The document also notes the import of 19,264 metric tonnes of feed corn on October 20, contributing to the total wheat import.
When approached for comment, Abdullahi Maiwada, National Public Relations Officer of the Nigerian Customs Service, stated that the service could not confirm the importers until the vessels docked. Meanwhile, inquiries to the Federal Ministry of Agriculture and the finance ministry yielded no responses.
Commenting on the zero-tax policy, Chief Ernest Elochukwu, a former president of the Association of Nigeria Licensed Customs Agents, criticized the government for announcing the policy without adequate implementation measures. He expressed skepticism about the policy’s effectiveness, noting that while it garnered public attention, the logistical details for execution were lacking.
Economist Adegboyega Adebajo echoed these sentiments, stating that the short-term measure was not achieving its goals due to insufficient infrastructure for implementation. He highlighted the need for clear qualifications for importers and effective coordination among government agencies to ensure successful policy execution.
In summary, while the importation of wheat is intended to alleviate food inflation in Nigeria, systemic challenges and delays in implementation are hindering progress.
