In response to a mounting food crisis, Nigeria recently implemented a 150-day waiver on import duties for essential food commodities like maize, rice, and wheat.
This short-term intervention aimed at mitigating food shortages and provide price relief for households struggling with high inflation and scarcity. Yet, for analysts, this waiver not only underscores Nigeria’s immediate food security challenges but also highlights a missed opportunity for African states to leverage intra-continental trade.
Through the Africa Continental Free Trade Agreement (AfCFTA), African nations could potentially have supplied these crucial goods, fostering regional resilience and food security while reaping economic benefits.
Anwulika Onwudinjo, a trade analyst at AFEX Africa, describes the waiver as a necessary short-term measure but notes the unfulfilled potential for closer trade collaboration within Africa.
“The waiver was majorly created to curb food supply scarcity,” he explains, citing high inflation and insecurity that have led to record-breaking food prices. “We just came off what has been the highest inflation rate ever recorded—40.87% in June—and today it’s still hovering at around 37.5%.”
With more Nigerian households facing chronic hunger, the waiver is an immediate response to an urgent problem. However, it also reflects Nigeria’s reliance on imports from outside the continent, which could be reduced through strategic African partnerships.
AfCFTA, launched in 2018, presents a framework for reducing trade barriers among African nations, creating the world’s largest free-trade area by connecting over 50 countries and 1.3 billion people. Despite its promise, the agreement has seen slow uptake in key areas, including agricultural trade. The analyst notes that by sourcing food commodities from neighboring countries through AfCFTA, Nigeria and its African trade partners could develop a more resilient food system capable of weathering disruptions in global supply chains.
“Improved cross-border trade, supported by better transport infrastructure and reduced trade barriers, has the potential to significantly enhance food security in Africa,” he said.
A Chance for Regional Suppliers to Fill Nigeria’s Demand
The 150-day waiver focuses on essential commodities like maize, husked brown rice, and wheat. In Nigeria, maize and wheat are crucial for both human consumption and animal feed production, while rice remains a staple food for millions. Many of these items could have been sourced from other African nations, reducing dependence on imports from outside the continent while bolstering African economies.
For example, East African countries like Tanzania and Uganda produce significant quantities of maize and rice that could meet Nigeria’s demand. Similarly, some North African countries have robust wheat production capabilities.
“With a structured trade framework under AfCFTA, African countries would be able to supply Nigeria with these essential commodities, creating a win-win scenario,” Onwudinjo said. “Nigeria could address its immediate food security needs, while African suppliers would benefit from new export markets.”
Increased intra-African trade would not only bring economic benefits to individual countries but would also build collective resilience to external shocks, such as the recent disruptions in global wheat markets caused by the Russia-Ukraine conflict. Moreover, regional trade would keep currency within the continent, supporting local industries and promoting economic stability across borders.
Why AfCFTA Matters for Food Security
Beyond addressing Nigeria’s immediate food shortages, expanded trade through AfCFTA could strengthen food security across Africa. Intra-African trade in food could help diversify the continent’s food supplies, reducing over-reliance on a handful of staple crops and decreasing the impact of crop failures or supply disruptions. Additionally, lower tariffs and simplified trade processes could make food more affordable, improving access to nutrition for millions of Africans.
“AfCFTA can make quality food more accessible by reducing tariffs, quotas, and documentation requirements,” says the analyst. “This would help reduce malnutrition, especially in vulnerable regions.”
Diversified food sourcing also has the potential to stabilize prices. With a larger network of suppliers and buyers across the continent, African countries would be less susceptible to sudden price surges resulting from international market disruptions. Onwudinjo adds, “This trade would encourage food diversification as different regions produce varying crops. It reduces reliance on a few staples, minimizing risk of crop failures and price fluctuations.”
Missed Economic Benefits and the Need for Infrastructure
Despite the benefits, challenges remain, particularly in infrastructure. African supply chains are often hampered by inadequate storage, poor transport networks, and limited processing facilities, all of which hinder the continent’s ability to meet its own demand.
Onwudinjo explains that improved infrastructure would be a major enabler for intra-African trade. “There needs to be improvement in the African supply chain by boosting storage facilities and road infrastructure networks.” These upgrades would not only support agricultural trade but also facilitate the movement of other goods across borders, unlocking broader economic growth.
Additionally, payment barriers across borders pose a significant challenge. “Even the smallest business owner should be able to send money across borders,” Onwudinjo suggests, emphasizing the need for accessible financial systems to facilitate payments within Africa.
Streamlined payment solutions would make it easier for African businesses to trade with one another, reducing the dependency on foreign currency and stabilizing local economies.
Strengthening Africa’s Food System Through Regional Cooperation
For African countries, the long-term advantages of strengthening regional trade cannot be overstated. According to the United Nations Conference on Trade and Development (UNCTAD), the AfCFTA could boost intra-African trade by about 33%, reducing the continent’s trade deficit by 51% and generating an estimated $450 billion in income.
Strengthened regional cooperation could promote shared prosperity, improve living standards, and create jobs across Africa, making the continent less vulnerable to global economic fluctuations and political tensions, such as those in Eastern Europe.
Beyond economic gains, AfCFTA could enhance Africa’s food security. “Regional cooperation promotes shared prosperity and makes African economies resilient to external shocks,” said Onwudinjo, underscoring the potential for AfCFTA to serve as a buffer against global crises.
The agreement could enable Africa to rely on its own resources to a greater extent, reducing the impact of global events, such as the Russia-Ukraine war, on food prices and availability in African markets.
Looking Forward
The recent 150-day waiver, while essential for addressing Nigeria’s immediate food security needs, shines a light on the continent’s missed potential for self-sufficiency. With AfCFTA, African countries have a unique opportunity to transform their economies and food systems.
However, for the agreement to reach its full potential, African nations must prioritize investments in infrastructure, storage, payment systems, and quality standards. Through coordinated efforts, African states can build a sustainable food system that benefits all, fostering resilience, economic growth, and security across borders
By harnessing the power of AfCFTA, Africa can take significant strides toward a more interconnected, self-sufficient continent. For Nigeria, sourcing staple foods from neighboring countries could become not only a pathway to food security but also a model for regional trade. With the right investments and commitment to AfCFTA’s goals, Africa can turn its immense agricultural potential into a source of stability, growth, and resilience for generations to come.
