LCCI says FG’s wheat policy may trigger trade war, high cost of bread

The Federal Government’s Agricultural Promotion Policy, which aims to reduce wheat importation by 50 per cent this year, may lead to a tariff bout between Nigeria and the United States, as well as high cost of bread.

Faulting the federal government’s policy on wheat, the Lagos Chamber of Commerce and Industry (LCCI) regretted that heavy import tariff on the commodity was adversely affecting millers in the country.

The country currently imports 4.4 million metric tonnes of wheat at an average market price of $211.45/tonne. After several interventions in the sector by both the private sector and the Federal Government, wheat production has increased from less than 200,000MT to 900,000MT.

The chamber argued in a statement that the heavy tariff imposition was being transferred to the final consumers of bread and related products in the form of high prices and detracts from the federal government pronouncements of working to ameliorate the excruciating poverty in the country.

“Protectionist policy by the Federal Government in the form of heavy tariff imposition of up to 50 per cent on wheat import continues to affect millers in the country,” the LCCI stated.

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According to the chamber, “apart from high prices being transferred to the final consumers of bread and related products, the high tariff may likely trigger a trade clash between the United States and Nigeria in the near term.

“Consistent efforts of millers to source wheat locally is yet to yield the desired results.”

The LCCI said a “feedback from the industry players show that millers are yet to settle with cassava to bread policy due to attendant issues such as higher cost of enzymes, issues of logistics and delays of moving cassava from farm to factories, cost of new machines and technology required to process cassava into flour and other challenges.

“Thus, there is a need for government to introduce some policy measures that will incentivise millers in the country to use cassava for bread,” it added.