The Poultry Association of Nigeria (PAN) has cautioned that the Federal Government’s proposed 5 percent levy on petroleum products could cripple poultry operations, worsen food inflation, and endanger national food security.
Speaking on behalf of poultry farmers, PAN President Sunday Ezeobiora said the industry relies heavily on petrol and diesel to power key operations such as hatcheries, cold storage, irrigation, climate control in poultry houses, and the transportation of feed, eggs, and live birds.
He warned that any additional fuel tax would sharply increase production costs and threaten the survival of thousands of small and medium-scale producers. “For smallholder farmers, who make up the bulk of producers, this could be the tipping point toward collapse,” he stressed.
According to Ezeobiora, higher fuel costs would ripple across the food value chain, raising prices of feed, veterinary services, packaging, and logistics. These costs, he noted, would eventually be passed on to consumers, making poultry products—an affordable protein source for millions of Nigerians—less accessible.
The association urged the government to weigh the long-term implications of the tax, particularly amid existing inflationary pressures and growing concerns over hunger and malnutrition. Instead of taxing petroleum products, PAN recommended targeted subsidies for maize, soybeans, and veterinary inputs, along with improved infrastructure such as stable power supply and rural roads to reduce farmers’ dependence on generators and costly transportation.
Ezeobiora also suggested that the government look to non-agricultural sectors, including mining, technology, and services, as alternative revenue streams.
“We call on the Federal Government to reconsider this proposal and engage meaningfully with agricultural stakeholders,” he said. “Our goal remains ensuring food self-sufficiency, protecting livelihoods, and supporting national development.”