To address rising inflation, the Federal Government has announced a six-month suspension of import duties on essential items. The suspension, outlined in an executive order, includes staple food items, pharmaceuticals, and other necessities.
Suspension Details
The following items will be exempt from import duties for six months:
* Staple food items
* Raw materials and inputs for manufacturing
* Inputs for agriculture production (e.g., fertilizers, seedlings, chemicals)
* Pharmaceutical products
* Poultry feeds, flour, and grains
Additional Measures
The order also mandates the Ministry of Finance and the Central Bank of Nigeria to provide low-interest loans to the agriculture, pharmaceutical, and manufacturing sectors. Additionally, the government is considering suspending value-added tax (VAT) on certain items, including automotive gas oil, basic food items, and agricultural inputs.
Background
The suspension of import duties is part of the government’s Accelerated Stabilization and Advancement Plan (ASAP). The plan also includes recommendations for importing paddy rice, suspending import duties and VAT on specified items, and pegging the import duty exchange rate.
Contradictory Statements
The government’s proposed plan conflicts with previous statements made by President Tinubu, who had expressed opposition to food imports. However, the current food crisis in Nigeria, with soaring food prices and the threat of severe food shortages, has prompted the government to reconsider its stance.
Impact of Food Crisis
The food crisis in Nigeria has had a devastating impact on the population. Food inflation has reached 40.5%, with rice prices skyrocketing by 169% in the past year. This has put a heavy strain on households and exacerbated economic challenges. An estimated 31 million Nigerians are at risk of severe food shortages by August. The crisis threatens not only economic stability but also health, education, and overall societal well-being.
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