NANTS, Olam Agri question viability of FG’s food import waiver policy

Olam Agri and the National Association of Nigerian Traders (NANTS) have expressed scepticism over the food import waiver policy by the federal government to tackle the current food crisis in the country.

They stressed the need for the government to take into consideration that the importation process from the country of origin takes about 3-4 months and, by the time the goods hit the sea, the 150-day waiver window may have elapsed.

The Director of Corporate & Regulatory Affairs at Olam Agri, Ade Adefeko, while speaking to The Guardian, applauded the policy and said that, as the largest player in rice, corn, and wheat, they would like to participate.

However, he raised concerns that since the Minister of Agriculture announced the policy in early July, they had waited for the fiscal framework from the Ministry of Finance regarding the modalities to guide players in the ecosystem. According to him, when it eventually came in mid-August, there was still a need for clarity on the modus operandi.

Adefeko stressed that time is of the essence, as imports take about 3 to 4 months to effect. He also noted that another issue is the exchange rate for imports.

At the current exchange rate of N1600/N1650, the landing costs of the grains will be very high, and the government might not be able to achieve the minimum retail price it seeks.

He suggested that food imports must have access to FX at an exchange rate between N800-N1000 to a $ for a six-month period for the policy to be feasible, and called for an extension of the waiver window.