Nigeria’s 150-Day Food Waiver Highlights Missed AfCFTA Opportunities for Trade and Food Security
In a bid to tackle its growing food crisis, Nigeria recently implemented a 150-day waiver on import duties for essential commodities like maize, rice, and wheat. This short-term measure was designed to alleviate food shortages and curb soaring prices for households struggling with inflation. However, analysts argue that the waiver not only highlights Nigeria’s food security challenges but also reveals a missed opportunity for African countries to strengthen trade and food systems through the African Continental Free Trade Agreement (AfCFTA).
The Waiver: A Temporary Fix
Anwulika Onwudinjo, a trade analyst at AFEX Africa, acknowledged the waiver’s immediate importance in addressing food scarcity. “The waiver was created to curb food supply shortages,” he explained, noting how inflation and insecurity have driven food prices to record highs. Inflation in Nigeria reached 40.87% in June 2024, with current rates hovering around 37.5%, leaving many households vulnerable to chronic hunger.
While the waiver offers temporary relief, it also underscores Nigeria’s reliance on non-African imports. By sourcing these commodities within Africa, particularly through the AfCFTA framework, Nigeria could reduce dependency on external markets and support regional economies.
AfCFTA: A Framework for Resilience
Launched in 2018, the AfCFTA aims to create the world’s largest free-trade area, connecting over 50 African nations and 1.3 billion people. Despite its potential, implementation has been slow, particularly in agricultural trade. Onwudinjo emphasized that greater utilization of AfCFTA could allow Nigeria to source essential commodities like maize, rice, and wheat from neighboring countries, fostering regional resilience and reducing reliance on global supply chains.
For example, East African nations like Tanzania and Uganda produce significant quantities of maize and rice that could meet Nigeria’s demand, while North African countries are strong in wheat production. Onwudinjo noted that a structured trade framework would create mutual benefits: Nigeria could secure its food needs, and African producers could access new markets.
“Intra-African trade supported by better transport infrastructure and reduced trade barriers can significantly enhance food security across the continent,” Onwudinjo said.
Economic and Food Security Benefits
Beyond addressing Nigeria’s immediate food shortages, expanding trade within Africa could strengthen the continent’s overall food security. By diversifying food sources, African nations would be less reliant on a handful of staple crops and better insulated from disruptions caused by global crises, such as the Russia-Ukraine conflict.
Additionally, reduced tariffs and streamlined trade processes under AfCFTA could make food more affordable, improving access to nutrition for millions of Africans. “AfCFTA can reduce malnutrition, especially in vulnerable regions, by making quality food more accessible through lower tariffs and simplified documentation,” Onwudinjo explained.
A larger network of suppliers and buyers within Africa would also stabilize prices, as markets become less susceptible to international fluctuations. “This trade would encourage food diversification, reducing reliance on a few staples and minimizing risks of crop failures and price volatility,” he added.
Addressing Infrastructure and Payment Challenges
Despite these opportunities, significant hurdles remain. Poor transport networks, inadequate storage facilities, and limited processing capabilities hinder intra-African trade. Onwudinjo called for investments in infrastructure to strengthen supply chains. “Improved storage facilities and road networks are crucial for unlocking the potential of African agricultural trade,” he said.
Payment barriers also pose a challenge, as cross-border transactions are often cumbersome. “Even small business owners should be able to send money across borders easily,” Onwudinjo suggested, emphasizing the need for accessible financial systems to support trade within the continent.
The Path Forward
The 150-day waiver underscores both the urgency of Nigeria’s food crisis and the untapped potential of regional cooperation. According to the United Nations Conference on Trade and Development (UNCTAD), AfCFTA could increase intra-African trade by 33%, reduce the continent’s trade deficit by 51%, and generate $450 billion in income.
By prioritizing investments in infrastructure, payment systems, and trade standards, African nations can unlock AfCFTA’s full potential, creating a more interconnected and resilient continent. For Nigeria, sourcing staple foods from African neighbors could serve as a model for regional trade, offering long-term solutions to food security challenges while promoting shared prosperity.
Harnessing the power of AfCFTA represents a transformative opportunity for Africa, enabling the continent to turn its agricultural potential into a foundation for economic stability, growth, and resilience.
