In a bold move to tackle rising inflation, the Federal Government of Nigeria is considering a six-month suspension of import duties on essential items, including staple food products and drugs.
A detailed proposal outlining this measure has been forwarded to President Bola Tinubu for review and potential approval.
The document suggests a temporary cessation of import duties on critical goods to alleviate the financial burden on citizens and curb inflation.
Key elements of the proposal include the suspension of levies on fertilizers, poultry feed, flour, and grains, aiming to reduce the cost of agricultural production and food prices. Additionally, the government plans to provide substantial support to key economic sectors through low-interest loans.
Inflation Reduction and Price Stability Order
The proposal, known as the Inflation Reduction and Price Stability Order, will direct the Ministry of Finance and the Central Bank of Nigeria to formulate a comprehensive plan for offering low-interest loans to the agriculture, pharmaceutical, and manufacturing sectors. This initiative is intended to boost production, improve supply chains, and ultimately drive down prices.
“This productive deployment will ultimately improve outputs and reduce inflation,” the document states, emphasizing the anticipated positive impact on the economy.
VAT Suspension on Essential Items
The proposed measures also include a suspension of value-added tax (VAT) on several essential goods and services. This encompasses automotive gas oil, various basic food items, semi-processed staples such as noodles and pasta, raw materials used in food manufacturing, electricity, public transportation, agricultural inputs and produce, and pharmaceutical products. These VAT suspensions are intended to remain in effect for the remainder of the year, providing immediate relief to consumers and businesses alike.
Awaiting Presidential Approval
As of now, President Tinubu has not yet signed the document for implementation. However, the outlined measures represent a proactive approach to managing inflation and supporting the nation’s economic stability during challenging times.
Should the President approve these proposals, Nigerians can expect a significant easing of inflationary pressures, leading to more affordable prices for essential goods and a more stable economic environment.
