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Food waivers: Abuja’s quick fix, Northern farmers’ slow death

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Last week, I attended a seminar-like meeting that passionately debated the issue of recent food import waiver – its meaning, implications and ramifications. Food is everybody’s business, and we must analyse the waiver objectively. For more than a century, Nigeria’s agricultural value chain has been remarkably stable. Farmers in the North planted, harvested, sold part of their produce, and stored the rest. Middlemen bought, hoarded, and resold—sometimes making fortunes. This was narrated in the early 19th century, by Hugh Clapperton, a British naval officer turned explorer, who undertook a journey deep into the heart of what is today Northern Nigeria.

He wrote admiringly of the agricultural potential he witnessed. He wrote about fertile lands and an industrious population. In Kano, he observed a bustling economy built on agriculture and processed products such as leatherwork and textiles, and trans-Saharan trade. This was not just trade; it was the lifeblood of Northern Nigeria’s economy. From the days of Alhassan Dantata to modern grain traders in Kano, this system sustained families, built empires, and kept farming profitable. But in one stroke of policy, the Tinubu administration has torn up this balance.

Last year, facing skyrocketing food prices, the government decided not to help farmers by lowering the cost of fertilizer, fuel, or equipment. No. Instead, it opened the borders wide and granted Nw97 billion worth of duty waivers on imported food—rice, maize, wheat, sorghum, according to Nigeria Customs Service. On the surface, it sounded like relief. Prices of rice, pasta, and flour dropped. Billionaire Abdul Samad Rabiu, whose BUA Foods was reportedly among the beneficiaries, triumphantly declared that “food prices are coming down in Nigeria.” He even gloated that hoarders were “crying” with unsold stock. But behind the smiles in Abuja and Lagos, the story in Zaria, Bichi, and Sokoto is one of despair.

Let’s call it what it is: this waiver is less about helping Nigerians and more about political appeasement. The biggest cheerleaders of cheap maize imports are the Southwest’s poultry farmers, who want affordable feed. The biggest losers? Northern maize farmers, who now can’t sell their crops at profitable prices. Tinubu’s government has effectively told northern farmers: “Thank you for feeding the nation for decades, but your sweat and toil mean nothing compared to political expediency.” How do you explain to a farmer in Bichi who spent heavily on fertilizer, pesticide, and irrigation—at prices inflated by subsidy removal and naira devaluation—that his maize will rot in storage because Abuja decided cheap imports matter more than his survival?

This is not new. Nigeria has a long history of short-sighted policies that destroy local capacity. Let me cite three examples: (i) The Structural Adjustment Programme of 1986 was supposed to revive the economy. Instead, it crippled local industries and entrenched import dependency. (ii) The rice imports of the early 2000s nearly wiped-out local rice farmers until tariffs were restored. And (iii) Petrol subsidies were meant to help the poor but only enriched smugglers and oil cabals. Today’s food waiver is walking down the same path: a quick fix for urban applause, a long-term disaster for the nation’s food security.

Agricultural economics is not rocket science: if farmers can’t make profit, they will stop planting. When they stop planting, supply collapses. By not supporting poor farmers, the federal government is simply “killing the only goose that lays the golden eggs”. And when supply collapses, Nigeria becomes permanently dependent on imports. It is happening already. Middlemen, who once kept the market alive by buying and storing produce, are ruined by imports and unwilling to take the risk again. Farmers, seeing no reward for their effort, will scale back. The so-called “cheap rice” of today is nothing but the seed of tomorrow’s famine. And let’s not forget: food insecurity fuels poverty, and poverty fuels insecurity. Northern Nigeria is already battling banditry and unemployment. Add the collapse of farming livelihoods, and you are lighting a match over dry grass.

The federal government is celebrating lower prices in Lagos supermarkets while ignoring the misery in Kano’s grain markets. It is easy politics: urban consumers cheer, businessmen like BUA smile, and the government claims credit. But this is false relief. Nigeria cannot import its way out of hunger. Every imported bag of rice is a nail in the coffin of a northern farmer. Every duty waiver granted is a transfer of wealth from peasant producers in Katsina to billionaires in Lagos and Abuja. As Mike Smart, an award-winning author and founder of Smart Farms LLC beautifully argued, “the future of food isn’t in distant fields or corporate warehouses—it’s in every home, every garden, and every community that takes control of its own food security.” By the current food waiver, the federal government is handing over our national food security to some distant land and corporate dealmakers. A poor farmer is just a “cog in a machine” that is run based on a short-term political calculus rather than long-term stability and security of our nation.

If the government truly wanted to help, it should have: (i) Reduced input costs by subsidizing fertilizer and easing fuel costs for irrigation. (ii) Invested in rural roads, storage, and credit to cut post-harvest losses. And (iii) Protected local farmers with smart tariffs while boosting productivity. Instead, it chose the lazy, politically expedient route—waivers that enrich a few and destroy millions of livelihoods.

Food waivers may win applause in Abuja, but they spell slow death for northern farmers. We are witnessing a repeat of Nigeria’s worst policy mistakes—short-term fixes with devastating long-term consequences. The Tinubu administration must answer a hard question: Whose side is it on—the billionaires who import or the farmers who feed us? Because if northern farmers abandon their fields, Nigeria will one day discover that cheap imports are the most expensive mistake it ever made.

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National Pension Commission (PenCom) changes price disclosure rule

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National Pension Commission (PenCom) has directed Pension Fund Administrators (PFAs) to discontinue the publication of daily unit prices for Retirement Savings Account (RSA) and Retiree Funds on their websites, replacing the requirement with a six-month disclosure of returns based on a three-year rolling average.

The directive was contained in a circular issued by the commission.

Under the new guideline, PFAs must stop implementing Section 2.0 (iv) of the Commission’s March 23, 2013 circular, which required them to display daily unit prices for the last seven days.

Instead, they are to publish on their websites the last six months’ rate of return — calculated as a 36-month compounded rolling average in line with the Circular for the Calculation and Reporting of Rate of Returns by Licensed Pension Fund Operators (LPFOs).

According to the commission, the rate of return must be clearly displayed on the homepage of each PFA’s website.

For instance, the six-month disclosure covering April to September 2025 would reflect the 36-month compounded returns ending in each of those months.

This has however raised transparency concerns in the pension industry.

The 2013 circular on Minimum Information to be displayed on PFA Websites formed part of PenCom’s transparency framework for the Contributory Pension Scheme.

The latest addendum modifies that requirement but does not remove PFAs’ obligation to disclose performance information.

Industry watchers say the development may reignite debate over the balance between long-term investment reporting and real-time transparency in Nigeria’s pension industry.

All enquiries on the addendum, the Commission said, should be directed to its Surveillance Department.

An industry analyst who does not want her name mentioned said the move could reduce contributors’ access to real-time performance data.

She said: “Daily unit prices allowed RSA holders to independently track short-term movements and detect fluctuations in fund valuation.

“With only a three-year rolling average now required, contributors will no longer see recent performance in isolation”, she noted.

The analyst added that while pension funds are long-term vehicles, removing daily disclosure raises concerns about information asymmetry.

“PFAs will still compute daily valuations internally. The issue is whether contributors should be denied access to data that already exists,” the analyst said.

However, another pension expert defended the directive, noting that pensions are structured for long-term accumulation and should be assessed over extended periods.

“A 36-month rolling average smooth’s out short-term volatility and provides a more accurate reflection of sustained performance,” the expert said, warning that excessive focus on daily fluctuations could encourage reactionary fund switching.

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Dollar rises in black market on Monday, traders quote new exchange rate

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Dollar edges higher against the naira in black market trading Dollar edges higher against the naira in black market trading

The United States dollar at the parallel market increased in value on Monday, Febuary 23 with traders quote at N1,375/$ as the new selling exchange rate.

The new rate is a slight depreciation for the naira when compared to N1,343 a dollar market closed on Friday, February 20, 2026.

Abdulahhi, a forex dealer, told Legit.ng that the new exchange rate follows renew demand in the market.

“I am currently selling dollars at N1,375/$1 and buying at N1,355/$1. The pound is trading at N1,845 to sell and N1,805 to buy, while the euro is also moving steadily in the market.

“It seems this week the dollar will return to over N1,400. I have been getting a lot of request.”

The fall of the naira comes as BDC operators continue to face difficulties in accessing dollars from commercial banks.

BDCs can get dollar

The apex bank had previously issued a circular allowing licensed BDCs to access foreign exchange through authorised dealers at the prevailing market rate.

Under the directive, each BDC is permitted to purchase up to $150,000 weekly, subject to Know Your Customer (KYC) requirements and due diligence checks, Punch reports.

Leadership reported that despite a policy announcement, some operators disclosed that no transactions have been completed under the new arrangement.

A BDC operator, who requested anonymity, said the directive remains largely unimplemented. According to him, the circular provides that disbursements will be made through settlement accounts, a provision that has raised operational concerns.

He questioned the feasibility of seamless, real-time transfers between domiciliary accounts across different banks, noting that such infrastructure may not yet be fully in place.

The operator added that while commercial banks appear supportive of the policy, many are still developing internal processes to align with the CBN’s directive.

He explained that BDCs are required to submit bid orders through their banks, which would then access the market on their behalf.

Naira in the official market

Meanwhile, in the Nigerian Foreign Exchange Market (NAFEM), the naira closed against the US dollar on Friday, February 20 at N1,346.32/$1 from N1,341.35/$1 a day earlier.

At the GTBank FX desk, the naira weakened by N7 against the dollar to quote N1,356/$1.

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