The Federal Government introduction of
reasonable tariff in the Agricultural sector is said to protect local
production, despite the criticism on increased tariff and outright bans of
certain food items Nigeria can produce.
The Minister of Agriculture and Rural Development, Adewunmi Adesina made this
clarification recently to the agriculture stakeholders and stressed that “while
lower tariffs will benefit
smaller West African economies dependent on imports, they will create major
disincentives for local production in Nigeria, where we are trying to unlock
the huge land, labour and demand potential to drive rapid agriculture and
agribusiness growth.”
He lamented that local production cannot be encouraged in a
situation where there is unbridled dumping of cheap low-quality products on
Nigerian markets as such a trend would
simply discourages the local farmers, increases rural poverty, and also
increase unemployment.
NaijaAgroNet gathered from the minister that even though
some are clamouring for the reduction in tariff and duty on the importation of
crude palm oil, rice, sugar, fish and so on, it is right to ensure that
fiscal and trade policies are well aligned to further boost the ongoing
transformation in the agricultural sector, while rapid gains are still being
made.
“While rapid gains are being made, we
must ensure that fiscal and trade policies are well aligned to further boost
the ongoing transformation in the agricultural sector. Policies and
institutional incentives must be sustained, and we must avoid policy reversals,
which have scuttled many efforts in the past. Of particular concern is the
issue of the Common External Tariff of the ECOWAS region,” he said.
NaijaAgroNet
also learnt from Adesina that “Nigeria should protect its farmers from the
effects of dumping of subsidized products smuggled daily into the
country. America does it. European Union does it. Nigeria should do the
same.”
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