The Federal Government is planning to suspend import duties on essential items, including staple foods, drugs, and raw materials, for six months to combat inflation.
An executive order, titled “Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024,” is expected to be signed by President Bola Tinubu.
The order will also waive levies on fertilizers, poultry feed, flour, and grains, and mandate the Ministry of Finance and the Central Bank of Nigeria (CBN) to provide low-interest loans to the agriculture, pharmaceutical, and manufacturing sectors.
In addition, the Value-Added Tax (VAT) on Automotive Gas Oil, basic food items, and semi-processed staple foods may be suspended for the rest of the year.
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READ ALSO: How Nigeria Spent N7.8trn Importing Food
The government’s Accelerated Stabilisation and Advancement Plan (ASAP) report recommends importing paddy rice and maize to address food inflation.
While the plan aims to provide relief to businesses and consumers, it conflicts with earlier statements by Tinubu, who pledged to reduce food imports and promote local production.
Economic experts like Dr Muda Yusuf have praised the plan, stating that it addresses key economic issues and will help calm inflationary pressures.
However, the government’s borrowing plan to fund its economic intervention may spark worries, with an additional N7.24tn proposed for 2024, pushing the total debt to N16.42tn.
