The Federal Government on Wednesday unveiled guidelines for the implementation of the “Zero Per cent Duty Rate and Value Added Tax” exemption on certain basic food items.
The guidelines followed the announcement by the Minister of Agriculture and Food Security, Abba Kyari, on the suspension of duties, tariffs, and taxes on some specific imported food items.
The food items are maize, husked brown rice, wheat and cowpea.
The intervention, which will last from July 15 to Dec.31, is aimed at addressing food inflation in the country.
The move is part of the Presidential Accelerated Stabilisation and Advancement Plan, aimed at achieving food security and economic stability.
Some stakeholders, however, expressed fear that it would have adverse effects on local products and businesses.
In separate interviews with the News Agency of Nigeria (NAN) on Sunday, the stakeholders noted that while the policy could reduce consumer prices,local products may suffer the most.
An Economic expert, David Ambi, said that farmers and producers may face increased competition from imported goods, which could harm local agriculture if they can not compete on price.
”Increased reliance on imports can create vulnerabilities to international market fluctuations, political instability in exporting countries, or disruptions in global supply chains,“ he said.
Ambi explained that if imports increased significantly, it could widen trade deficit, thereby affecting the country`s foreign exchange reserves.
He said that that reduction in revenue could affect public funds earmarked for critical public services or infrastructure projects.
Similarly, a public analyst, Mr Bulus Dabit , said that farmers may be worse hit by the intervention, as they may not be able to compete with international goods produced at lower costs.
He said that the situation could lead to economic challenges, particularly affecting their incomes, and urged the government to address the underlying issues that caused the situation.
A business consultant, Mr Fife Banks, described the intervention as timely, particularly in light of the cumulative impact of the clashes between farmers amd herders in rural agrarian communities accross the nation.
He, however, said that while the intervention was commendable, it was crucial for the government to seek long-term measures to protect Nigerians who have businesses in the sector from economic setbacks.
Mrs Charity Bello, the Secretary of Small-holder Women Farmers Organisation in Nigeria (SWOFON) in Plateau, said that the dollar must be regulated, and downward review of fuel prices waa necessary for the intervention to have impact. .
