In a move aimed at addressing the country’s rising inflation, the Tinubu administration is reportedly planning to issue an executive order that would suspend import duties on a range of essential items for a period of six months.
According to a draft document seen by our correspondent, the proposed “Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024” would waive import duties on staple food items, raw materials for manufacturing, agricultural inputs, pharmaceuticals, and other crucial goods.
The order is expected to mandate the Ministry of Finance and the Central Bank of Nigeria to devise a plan for offering low-interest loans to key sectors, including agriculture, pharmaceuticals, and manufacturing. Additionally, the government is considering suspending the Value-Added Tax on a variety of goods and services, such as automotive gas oil, basic food items, electricity, and public transportation.
The proposed measures appear to conflict with earlier statements made by President Tinubu, who had vowed to curb food imports and instead focus on boosting domestic agricultural production. However, the worsening food crisis, with food inflation reaching 40.5%, has seemingly prompted the administration to consider more immediate interventions.
Experts suggest that the temporary suspension of import duties could provide some relief to consumers by lowering the prices of essential goods. However, they caution that the long-term solution lies in addressing structural issues, such as enhancing agricultural productivity and diversifying the economy.
The executive order is expected to be signed in the coming weeks, subject to final approval by the President. The government’s ability to effectively implement these measures and address the root causes of inflation will be closely watched by the public and economic stakeholders.
