An Abuja based think tank economic and development research organisation, Pol Eco Analytics , has flayed the federal government’s decision on suspending taxes for importation of some select food, saying that it is not strategic even though it is a short to medium term action.
This is even as the research organisation called on federal and state governments to holistically embrace food production amidst what it called the sky-rocketing food inflation in the country.
It will be recalled that the federal government muted plans recently to suspend duties, tariffs, and taxes on some essential food items imported through land and sea borders.
But in a statement made available to the press yesterday in Abuja and signed by the organization’s Lead Researcher and Policy Analyst,
Adefolarin Olamilekan, he said the current situation in Nigeria is particularly worrisome as many households are experiencing catastrophic hunger.
According to him, under the current administration, millions of Nigerians are struggling to keep up with soaring high prices of food, even as majority of them have not benefited from palliative distribution at the state and local government level, rather poor Nigerians have shown resilience and patience.
He said the situation is such that prices of major staple grains, food and beverages continue to rise on a daily basis in the country above 200 percent.
“Regrettably, economic challenges such as insecurity,high cost of transportation, naira depreciation, soaring inflation, energy deficit,storage inadequacy, high cost of fertilizer and other farm inputs have worsened the food crisis, affecting ordinary people across Nigeria.
“Although, naira depreciation in the last six months, alongside fuel and transport costs, is a major driver of price volatility in Nigeria, the federal government’s recourse to food import is not strategic even though it is a short to medium term action with 150 days duty free on imported food like wheat and maize.
The Pol Eco Analytics’ Lead Researcher said the federal government needs to be worried about the impact of depending on food importation to meet the population’s food needs, including the danger on naira stability in the face of foreign exchange, even as the nation struggles with major fiscal constraints and macroeconomic challenges.
He said, “To make a lasting difference in food security in Nigeria, the government needs to look beyond food importation and duty free essentials in response to increasingly high price of food.
Pol Eco Analytics urged the Tinubu – led federal government to implement home grown sustainable solutions that would guarantee food security, through enhanced agricultural productivity, mitigate the adverse effects of government failing monetary, fiscal and trade policies in the current economic volatility.
Olamilekan also called for the mobilization, promotion and support of policies that can encourage the diversification of production and processing of foods through provision of agricultural inputs, access to productive resources for all to stimulate increased production and improve product availability across Nigeria.
“Pol Eco Analytics strongly believe that the Tinubu’s government can save many poor Nigerians at this period of emergencies by
making adequate access to good quality food for all Nigeria enabling them to enjoy healthy and active lives, which is a pathway to peace, stability and share prosperity
“In this regard, Tinubu’s government and the sub-national governments must redouble their efforts to eliminate hunger and with a national goal of achieving food security,” he concluded.
