Jet FarmsNG, an agricultural company, has appealed to President Bola Tinubu to reconsider the policy of suspending duties, tariffs, and taxes on essential food items for a 150-day period. According to report by Vanguard News published on July 15 2024, The firm has expressed concerns about the potential negative impact of this decision on local farmers who have made significant investments in expensive agricultural inputs.
During an interview with Vanguard, Jerry Tobi, the Chief Farmer of Africa and CEO of Jet FarmsNG, argued against the rush to open land and sea borders for food imports, as local farmers are already prepared to harvest their crops in the near future.
Tobi emphasized that while the government's intention to alleviate food inflation and enhance food security is commendable, the execution of the policy seems poorly calculated. He raised several critical questions that require immediate answers.
The Chief Farmer of Africa highlighted the importance of understanding the underlying causes of the current food inflation crisis, which include inadequate support for local farmers, poor infrastructure, and inconsistent agricultural policies. He stressed the need for a thorough analysis of these factors to avoid repeating past mistakes.
Tobi also underscored the significance of learning from previous agricultural policy and implementation errors. Insufficient and inconsistent support for local farmers, inadequate investment in agricultural infrastructure, and the failure to create a favorable environment for agribusiness have all contributed to the current crisis. Addressing these issues and ensuring well-informed and effectively executed future policies are crucial.
Nigeria, with its abundant agricultural resources and a workforce of over 40 million farmers, ideally should be self-sufficient in food production. However, the reliance on imports indicates systemic issues within the agricultural sector. The government should prioritize enhancing local production capabilities, providing adequate support to farmers, and addressing barriers that hinder agricultural productivity.
Tobi called for transparency and accountability in evaluating the effectiveness of the government's measures to ensure food security. He emphasized the importance of addressing issues such as land clearing, deploying concessionary capital/funding, and defining the role of the Central Bank in funding the agricultural value chain.
The status of the national food reserves is currently a cause for concern. Effective management of these reserves is crucial for mitigating food shortages and stabilizing prices. The government should disclose the state of these reserves and outline steps to replenish and manage them effectively.
As the harvest season approaches from September to November, proactive measures should be in place to support farmers and secure a stable harvest. This includes providing necessary inputs, ensuring fair prices, and preventing post-harvest losses. The government should provide detailed information on the steps being taken to support farmers and safeguard the upcoming harvest.
Tobi expressed concerns that the suspension of duties and tariffs could result in an influx of cheaper imported food items, negatively impacting local farmers who already face high input costs. The government needs to address how it plans to support these farmers and mitigate any adverse effects on local agricultural production.
Despite the challenges, Tobi remained optimistic and suggested proactive measures. He highlighted the opportunity to clear lands and cultivate crops such as maize, rice, cowpeas, and sesame seeds for export. The government should strategically secure loans from international financial institutions to boost local production and address ongoing food insecurity.
While acknowledging the government's aim to provide immediate relief from food inflation, Tobi cautioned against undermining the local agricultural sector, particularly small and medium-scale industries that are thriving and on the verge of scaling up. He urged the government to proceed with caution and adopt a well-considered approach that addresses the root causes of food insecurity, supports local farmers, and invests in the agricultural sector. To mitigate potential negative impacts, he suggested reducing the duty-free period to 90 days and closely monitoring the outcomes during this quarter.
In conclusion, Tobi emphasized the importance of ensuring that government policies establish a robust framework for long-term food security without inadvertently harming the agricultural sector.