The All Farmers Association of Nigeria’s (AFAN) Lagos chapter chairman, Mr Femi Oke, stated in an interview, that the taxes levied on the importation of agricultural supplies were affecting the sector and production costs for players in the sector by up to 70%.
Farmers and industry experts agree that the increase in production costs over the past two years can be partially attributed to taxes paid on imported agricultural products.
“The increase in the importation cost of agricultural products is not really encouraging at all. We believe the Federal government should waive every levy and tax on agricultural imports. That would solve a lot of problems. These things are having about 70 per cent effect on the agricultural products and also the taxes on the importation of agricultural products.”
Mr Shakin Agbayewa, the Deputy Lagos Chairman of AFAN, also spoke and emphasised the necessity for the nation to start generating the majority of its daily necessities rather than relying solely on imports.
He claimed that the country’s over-reliance on the importation of agricultural inputs and goods was seriously harming it.
Noting that the country should leverage the present opportunities in the wheat market by farming the crop, Agbayewa said, “Wheat is one of the most consumed products in Nigeria and 90 per cent of wheat is imported into the country.
Why can’t we start farming wheat in the country? Now, few people move into the importation of wheat in Nigeria, going against us planting the product. Today, the countries we import wheat from are at war and we cannot bring the wheat into the country again.”
Kabir Ibrahim, the president of AFAN, stated that one of the main factors contributing to the high price of agricultural products in the nation was the importation of the raw materials required to blend fertilisers.
Ibrahim pointed to insecurity as a different difficulty faced by farmers in addition to the high expense of fertiliser.
Farmers should not be discussing taxes on wheat and sugar, according to Dr Muda Yusuf, Chief Executive Officer of the Center for the Promotion of Private Enterprise. Instead, farmers should concentrate more on the price of imported inputs.
“Farmers should not be talking about duties on wheat and sugar. What they should be talking about is the cost of imported inputs like agrochemicals and pieces of machinery. They can’t be complaining about the fact that they are paying high import duty on wheat because they are supposed to be planting it and not importing it. Farmers’ should take advantage of the high import duty.
It should be in their favour, but if you are talking about the inputs, especially fertilizers, agrochemicals and agricultural machinery, then those things should actually be attracting zero duty. And I think there is a tariff concession on those things. Ideally, the government should waive duties completely on agrochemicals and farm types of equipment.”
