The United States has criticised Nigeria’s handling of its temporary suspension of import duties on key food staples, warning that weak execution and lack of transparency the policy’s impact on inflation and small businesses.
In its 2025 Nigeria Investment Climate Statement, the US Department of State said the duty-free import window announced in July 2024 aimed at easing food prices and supporting households failed to deliver meaningful results due to delays and policy bottlenecks. The 150-day plan was intended to suspend duties, tariffs, and taxes on essential staples including rice, wheat, maize, and beans, but bureaucracy and slow implementation prevented it from taking off as scheduled.
As a result, many small and medium-sized enterprises (SMEs) in the food and agribusiness sectors, which were expected to benefit from lower input costs and improved supply, were left without the intended relief. The report suggests that poor coordination and weak execution significantly reduced the policy’s effectiveness in curbing inflation and supporting business operations.
The statement also highlighted deep-rooted structural issues affecting Nigeria’s investment climate, particularly in the power sector. It noted that ongoing regulatory uncertainty and frequent transmission failures continue to force small firms and households to rely on expensive generators, increasing operational costs and limiting growth.
The US report further pointed out that Nigeria’s economy slipped from Africa’s second-largest to fourth-largest by GDP in 2024, as the combined effects of fuel subsidy removal, exchange rate liberalisation, and policy missteps weighed heavily on growth and investor confidence.
Analysts say the failure to effectively implement the duty-free food import policy reflects a broader governance challenge that disproportionately affects small businesses. For SMEs already struggling with rising costs, high inflation, and energy constraints, missed opportunities like this deepen their vulnerability and threaten their ability to scale, innovate, and contribute to job creation.
