The Lagos Chamber of Commerce and Industry (LCCI) has criticized the Federal Government for delays in implementing its duty-free food importation policy, particularly after the arrival of a 32,000-tonne shipment of brown rice from Thailand in Lagos....CLICK HERE TO READ THE FULL ARTICLE➤
The rice, imported by logistics firm DUCAT, was aimed at addressing rising food inflation, which slightly eased to 39.84% in December 2024 from 39.93% in November.
The LCCI highlighted that the shipment arrived after the government’s 180-day duty-free import window had expired, questioning the timing and effectiveness of the policy.
In a statement, LCCI Director-General Chinyere Almona commented on the delayed arrival of the rice shipment, noting, “The delayed arrival of the rice shipment undermines the government’s intention to curb food inflation.
Such policies must be executed timely to stabilise food prices effectively.”
The Chamber pointed out that food prices continue to rise, significantly impacting household purchasing power and business operations.
“The rising cost of food is eroding the average Nigerian spending capacity and threatening economic stability. The importation of rice to fill local supply gaps is a necessary fiscal intervention, but the timing of this policy implementation is critical,” Almona added.
The LCCI clarified that the goal of these interventions is not to harm local rice producers but to address supply gaps in response to growing demand.
Almona suggested that to address persistent food inflation, Nigeria should focus on increasing agricultural productivity by investing in agricultural value chains, such as improving storage facilities and the distribution of fertilisers and grains to farmers.
She also stressed the importance of policy consistency, stating, “We need policies that are not only well conceived but also implemented without delay.”
She further emphasized the need to address security challenges, noting that insecurity remains a significant barrier to agricultural production and improving food supply.
The Chamber reiterated its call for fiscal reforms, emphasizing that structural economic challenges must be tackled and investments in local production made to achieve long-term benefits.
“Rate hikes alone will not curb inflation. Nigeria needs comprehensive fiscal interventions to stabilise food prices,” Almona concluded.
The rice shipment and its implications have reignited discussions on the federal government’s approach to food inflation and the effectiveness of its policy measures, drawing criticisms from members of the organized private sector.
The shipment was reported on January 10, following a Bloomberg report. ...CLICK HERE TO READ THE FULL ARTICLE➤
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