The Lagos Chamber of Commerce and Industry has criticised the Federal Government for its delay in implementing the duty-free food importation policy, particularly following the arrival of a 32,000-tonne shipment of brown rice from Thailand in Lagos.
The rice, imported through logistics firm DUCAT, was intended to mitigate the escalating food inflation, which dropped to 39.84 per cent in December 2024 from the November 2024 rate of 39.93 per cent.
The LCCI noted that the shipment arrived after the expiration of the government’s 180-day duty-free import window, raising concerns about the policy’s effectiveness and timing.
In a statement to The PUNCH, LCCI Director-General Chinyere Almona said, “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 highlighted that despite the government’s efforts, food prices remain on an upward trajectory, significantly affecting 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 such interventions are not aimed at undermining local rice producers but at addressing supply gaps in the face of mounting demand.
The LCCI DG recommended that to tackle the persistent food inflation crisis, Nigeria must boost agricultural productivity by increasing investment in agricultural value chains, including better storage facilities and the distribution of fertilisers and grains to farmers.
She urged policy consistency, stating, “We need policies that are not only well conceived but also implemented without delay.”
Further, Almona called for renewed focus on addressing security challenges. She stressed that insecurity remains a significant obstacle to agricultural production, and resolving these challenges is key to improving food supply.
The Chamber reiterated its call for fiscal reforms, emphasising that tackling structural economic challenges and investing in local production would yield 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 sparked renewed debates on the federal government’s handling of food inflation and the effectiveness of its policy measures, in line with organised private sector members’ criticisms.
Reports of the rice shipment came on January 10, following a Bloomberg report.
