The Federal Government is preparing to suspend import duties on staple foods, drugs, and other essential goods for six months. This policy, outlined in the “Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024,” is expected to be signed by President Bola Tinubu. The order aims to reduce the cost of living by lowering prices of key commodities like fertilizers, poultry feed, flour, and grains.
The Executive Order will also direct the Ministry of Finance and the Central Bank of Nigeria (CBN) to create a strategy for providing low-interest loans to crucial sectors such as agriculture, pharmaceuticals, and manufacturing. Additionally, the order proposes the suspension of the Value-Added Tax on Automotive Gas Oil, basic food items, semi-processed staple foods, raw-material inputs for food manufacturing, electricity, and public transportation for the rest of the year.
In the Accelerated Stabilisation and Advancement Plan (ASAP) report, the government is also considering importing paddy rice and maize to combat food inflation. The report recommends suspending import duties and VAT on specific items and implementing an import duty exchange rate peg to stabilize prices and ease economic pressures on consumers.