President Bola Ahmed Tinubu is set to issue an order titled “Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024.” To curb inflation, the federal government of Nigeria plans to suspend the payment of import duties on food, drugs, and other essential items for six months.
However, the document doesn’t have the presidential stamp but was dated to be signed in April. The plan also includes waiving fertilizers, poultry feed, flour, and grain levies.
According to the statement, The import duty and other tariffs are to be suspended on the following for six months: Staple food items; Raw materials and other direct inputs used for manufacturing; Inputs for agriculture production, including fertilizers, seedlings, and chemicals, Pharmaceutical products, Poultry feeds, flour and grains,”
The executive order mandates the Ministry of Finance and the Central Bank of Nigeria to initiate a low-interest loan offer in various sectors, including agriculture, pharmaceuticals, and manufacturing.
The president will also likely suspend the Value-Added Tax on Automotive Gas Oil and semi-processed staple food items such as noodles and pasta. In its Accelerated Stabilization and Advancement Plan report, the government is considering importing paddy rice and maize into the country to contain the growing surge of food inflation.
The food crisis in Nigeria looms large, threatening the nation’s stability. Currently, food inflation has skyrocketed, reaching 40.5 percent.
The Centre for the Promotion of Private Enterprise’s Chief Executive Officer, Dr. Muda Yusuf, applauded the stabilization plan. He said, “The proposed Accelerated Stabilisation and Advancement Plan is a laudable proposition from the Finance Minister. It addresses many of the burning economic issues bothering real sector investors.”
Wale Edun, the Minister of Finance, revealed in the ASAP report that the Federal Government plans to borrow an additional N7.24tn in 2024 to fund its economic intervention plan.
