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1.0 Executive Summary

On the 4th of September, the Agric & Agro-Allied Committee of the Chartered Institute of Directors (CIoD) Nigeria convened a webinar to engage stakeholders and discuss the 150-day duty-free food import policy introduced by the federal government to mitigate food scarcity and inflation in Nigeria. The conversation brought together stakeholders from various sectors to examine the policy's immediate and long-term implications for local farmers and the agricultural market. Key issues highlighted included the risk of undermining local production, inadequate infrastructure, and the need for financial and policy support to strengthen the sector.

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2.0 Introduction

Nigeria's government recently announced a 150-day window for duty-free food imports to address rising food prices and supply shortages. While this policy offers short-term relief, concerns have been raised about its potential impact on the agricultural sector, particularly for smallholder farmers. This prompted the Institute, through its Agric & Agro-Allied Committee, to organize a stakeholder gathering and engagement. The gathering drew stakeholders from agriculture, finance, and related sectors to discuss the policy's implications and propose ways to balance short-term relief with long-term growth in local farming.

The Chairman of the Committee, Mrs. Folusho Olaniyan, MFR, F.CIoD, warmly welcomed participants to the webinar. She acknowledged the Governing Council's support and highlighted the significance of this policy in providing relief to households and small-scale agricultural stakeholders. She expressed anticipation for valuable insights from the distinguished panelists, including experts from the agriculture, finance, and agribusiness sectors, as well as productive discussions on the policy’s implications for Nigeria’s agricultural landscape.

The President and Chairman of the Governing Council of CIoD Nigeria, Alh. Tijjani Borodo, F.CIoD, in his address, highlighted the urgency of addressing food inflation, which has worsened due to factors such as insecurity and poor policy implementation, while the new government policy aims to reduce food prices. He emphasised the importance of this platform in analysing the policy’s design, implementation, and effects on the agricultural sector. He encouraged active participation from a diverse range of stakeholders to gain insights and develop strategies to enhance the policy’s benefits while addressing its challenges.

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3.0 Key Takeaways

The following highlights the key issues discussed during the webinar:

3.1 Food Inflation and Policy Relief
The duty-free import policy is seen as a necessary intervention to tackle food scarcity, but its longer-term effects on local production need further consideration.

3.2 Challenges for Farmers
The influx of cheaper imported goods poses a threat to local farmers who struggle with high input costs, such as fertiliser, and inadequate infrastructure for storage and irrigation.

3.3 Financial Support
Smallholder farmers, who form the backbone of the agricultural sector, require better access to credit. Financial institutions are encouraged to develop models suited to their needs, with government backing to reduce risks.

3.4 Private Sector Involvement
There was a consensus on the importance of private sector engagement in shaping policies that encourage investment in local agriculture, rather than relying heavily on imports.

3.5 Commodity Boards
The reinstatement of commodity boards was discussed as a means to stabilise prices and protect local producers from being outpriced by imported goods.

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4.0 Recommendations

The following were the key recommendations from the webinar for the government's consideration:

4.1. Convene a wider stakeholder forum to review the duty-free food import policy and its broader effects on the agricultural sector.

4.2. Enforcement of pricing regulations to prevent profiteering from food imports.

4.3. Reinstating and strengthening commodity boards to stabilise prices and support local farmers.

4.4. Enhanced security measures to protect farmers and agricultural investments.

4.5. Invest in irrigation systems and other infrastructure to enable year-round farming.

4.6. Encourage local fertiliser production to reduce the cost of farming inputs.

4.7. Develop targeted financing solutions for smallholder farmers, with support from government-backed credit guarantees.

4.8. Ensure that private sector representatives are included in future agricultural policy discussions to foster a collaborative approach.

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5.0 Conclusion

The discussion underscored the need for a balanced approach to Nigeria’s 150-day duty-free food import policy. While addressing immediate food security concerns is critical, a longer-term strategy to boost local production, support farmers, and develop infrastructure is essential for sustainable growth. The recommendations aim to guide the government and private sector towards policies that promote agricultural development and ensure the country's food security in the coming years.

Bamidele Alimi, FNIM, F.CIoD
Director General/CEO
Monday, September 16, 2024