As hunger and food insecurity levels escalate, Nigeria has welcomed a shipment of 32 tons of rice from Thailand, providing temporary relief as the country faces a deepening food crisis.
This shipment marks the first significant rice import in a decade and has arrived in Lagos, facilitated by DUCAT, the logistics company responsible for its delivery. The rice export from Thailand comes in the wake of Nigeria’s decision to lift tariffs on wheat, corn, rice, and other food products last year, according to DUCAT.
Despite the implementation of this duty waiver, purchasing activity has been cautious, largely due to concerns over the potential adverse effects on local producers.
“Nigeria is actively seeking ways to expand and enhance its food supply accessibility,” stated DUCAT Chief Executive Officer Adrian Beciri. In response to skyrocketing food inflation—the highest in three decades—the Nigerian government has introduced a series of measures to alleviate the burden on its citizens, particularly in a nation where almost half of the population of over 200 million lives in extreme poverty.
On Wednesday, Agriculture and Food Security Minister Abubakar Kyari announced plans to establish a 180-day window for duty-free imports of essential food crops, including wheat and corn. He also mentioned that imported food would have a set recommended retail price to help control costs.
The government is also in the process of finalizing compliance guidelines pertaining to these new initiatives, which will be released shortly, as stated by a government official.
Nigeria is currently reeling from the impact of broad economic reforms initiated by President Bola Tinubu after his inauguration in May 2023. These reforms, including the devaluation of the naira and increased electricity tariffs, have led to significant price hikes, pushing food inflation to an alarming 41% in May—the highest in 28 years.
The surge in prices, paired with a weakening naira, has compelled the central bank to raise interest rates to historic levels.
Last month, the government unveiled plans for further measures aimed at combating inflation under a new initiative called the Inflation Reduction and Price Stability Order.
In response to soaring food prices, the federal government approved a 150-day duty-free import window in July of the previous year for the importation of maize, husked brown rice, and wheat, with an aim to procure 250,000 metric tons to bolster the strategic grain reserve.
The policy also aims to establish Guaranteed Minimum Prices (GMP) for essential commodities, enhance production among smallholder farmers for the upcoming 2024/2025 season, and promote the creation of fortified foods.
However, this approach has garnered criticism, such as from Dr. Akinwunmi Adesina, President of the African Development Bank, who has expressed concerns regarding Nigeria’s increasing dependency on food imports. He argues that such a strategy undermines the country’s agricultural policy and threatens its economic stability.
