The Federal Government is reportedly preparing to suspend the payment of import duties on staple food items, drugs, and other essential goods for an initial period of six months.
This initiative, aimed at curbing inflation, is detailed in an Executive Order titled “Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024,” The PUNCH reports.
The Executive Order, which is expected to be issued by the President, is part of a broader strategy to stabilize prices and reduce the economic burden on citizens.
Although the document has been seen by our correspondent, it has yet to bear the President’s signature, which was initially scheduled for April.
Key measures outlined in the document include the suspension of import duties and other tariffs on a range of essential items. Specifically, the suspension will apply to staple food items, raw materials and other direct inputs used in manufacturing, agricultural production inputs such as fertilizers, seedlings, and chemicals, pharmaceutical products, poultry feeds, flour, and grains.
Furthermore, the Executive Order mandates the Ministry of Finance and the Central Bank of Nigeria to develop a plan to offer low-interest loans to critical sectors, including agriculture, pharmaceuticals, and manufacturing.
This move is intended to stimulate production and reduce costs, ultimately leading to lower prices for consumers.
In addition to the suspension of import duties, the President is likely to suspend the Value-Added Tax (VAT) on several essential items for the remainder of the year.
The items include Automotive Gas Oil, basic food items, semi-processed staple food items such as noodles and pasta, raw material inputs for the manufacture of food items, electricity and public transportation, as well as agricultural inputs and produce, and pharmaceutical products.
These comprehensive measures are designed to alleviate the financial strain on Nigerian households and ensure the affordability of essential goods. By reducing the cost burden on both producers and consumers, the Federal Government aims to foster economic stability and mitigate the adverse effects of inflation.
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