Mixed reactions trail new policy regime on food import

The federal governments new policy regime on food import has been hotly debated in many quarters with some stakeholders expressing divergent views on the matter.According to theNational Association of Small and Medium Enterprises (NASME)the new policy regime by the government was long overdue.Specifically, the Chairman, Lagos State Branch of NASME, Mr. Solomon Aderoju said the federal governments decision to restrict foreign exchange on food import is favourable to the Association and manufacturers across the country.Aderoju argued that NASME did not only welcome the pronouncement, but could not wait to hear the implementation of outright ban.He pointed out that if such policy measure is not taken, that Nigeria would be the greatest loser in the continental marriage called AfCTA.However in his reaction, the Director General of Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadiri stated thatthat such policy may be counterproductive if implemented by fiat, without ensuring necessary alignment with the fiscal policy and other economicpolicy initiatives of this administration.Ajayi-Kadiri said, The necessary support that would sustain the steady progress in agricultural production and attainment of full food security, for instance, would have to be taken into account.The CBN will has to do an assessment of where we are in practical terms and realistically weigh its options before embarking on such a far reaching policy. There should also be a process to be followed in the apex bank before such a plan is unfolded. We have to take into account the state of our infrastructure and its capacity to respond and support it and so on.According to the Director General of Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf,the current forex policy conceptualisation and management are adversely impacting investment.Yusuf said,If policy and regulatory risks continue to escalate as we are currently experiencing, the chances of stimulating investment, whether domestic or foreign, would remain dim.Over the last couple of years, food inflation had been a source of worry. It has consistently been ahead of core inflation. This is reflection of the productivity challenges in the agricultural sector which has lately been complicated by security challenges across the country and attacks on farming communities.He pointed out that the sector is still largely dependent on small holder farmers, adding that with little mechanisation and application of technology the sector would be enhanced.Transportation is another key impediment to food security in the country. These are fundamental issues that need to be addressed, and urgently too.
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