…says economy showing signs of recovery after fuel subsidy removal
The federal government has emphasised its cautious approach to importing food, aiming to avoid disrupting the country’s agricultural productivity and growth strategies.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, provided the explanation on Thursday while speaking during the 64th Independence Anniversary World Press Conference, held in Abuja.
Edun stressed that Nigeria should not rely heavily on food imports, especially with its already laid out plans and strategies for boosting domestic food production.
To achieve this, he said the government is working on providing inputs, seeds, and fertilizers to small-scale farmers under successful schemes, disclosing that he chairs coordinating meetings to ensure timely delivery of essential inputs for the upcoming dry season harvest in November.
Edun, however, highlighted the importance of balancing imports with domestic production to avoid discouraging local farmers and millers adding the government has procured maize and wheat in the short term.
He added that the government seeks to determine the optimal quantity of imports that won’t harm the agricultural sector.
He also pointed out that food insecurity currently affects about 35% of the global population and not just a Nigerian peculiar case, adding that the country is focusing on nutrition security through the Nutrition and Food Council, chaired by Vice President Senator Kashim Shetima.
He said long-term strategies are in place to increase agricultural productivity, aiming to boost yields to comparable levels with developing countries.
He added that the goal is to develop locally productive seedlings to enhance domestic agricultural growth.
“On the issue of importation of food, I think the first thing for us to all accept is that this is not where we should be. We should not be importing food and the strategy aim and objective of the government is to get us out of that situation as soon as possible.
“The work on the remainder of the wet season harvest, providing inputs, seeds, fertilizer to small scale farmers, particularly under the Nigerian Agricultural Growth Scheme and Agri-pocket Scheme, which has been successful, is ongoing.
“Similarly, there are daily meetings, there are some coordinating meetings, which I chair, working on making sure that the dry season harvest, that will be planted around November, is one whereby we have organized it well, the inputs that are meant to be delivered are done so on time.
“In the meantime, there is a short-term measure to import food. The government has already procured maize and wheat, which is on its way. As regards the other importers, it is critical that we do not disrupt the domestic production of food.
“It is critical that we do not disrupt farming in Nigeria by flooding the market with imports that now put prices where farmers are now discouraged from engaging in production and millers are discouraged from engaging in food processing”, he said.
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He hailed the removal of fuel subsidies as a “necessary, bold, and courageous” move by President Tinubu, adding that the decision has garnered international support, attracting concessional financing to bolster the economy.
Edun, however, noted that it led to increased prices, prompting intervention schemes, which have provided direct benefits to approximately 15 million households, covering 75 million Nigerians.
He said 840,000 payments were recently made to 4.4 million households, covering 20 million Nigerians, adding that the government aims to scale up these interventions, focusing on the poorest and most vulnerable.
Edun highlighted the benefits of domestic refiners buying crude from NNPC in naira, citing lower oil prices as an opportunity for reduced petroleum product prices. The removal of subsidies has opened up the market to competition and pricing.