The Federal Government Of Nigeria plans to suspend import duties on essential goods for six months.
This move is part of an Executive Order called “Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024.”
The order aims to waive import duties on items like fertilizers, poultry feed, flour, and grains.
The goal is to reduce the cost of these crucial products, alleviate the financial burden on Nigerians, and enhance overall economic conditions.
Additionally, the Executive Order will require the Ministry of Finance and the Central bank of Nigeria to collaborate on offering low-interest loans to key sectors like agriculture, pharmaceuticals, and manufacturing.
The document read in part;
“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 fertilisers, seedlings, and chemicals, Pharmaceutical products, Poultry feeds, flour and grains.”
The president is expected to suspend the Value-Added Tax on Automotive Gas Oil, certain essential food items, semi-processed staple foods like noodles and pasta, raw materials for food manufacturing, electricity, public transportation, agricultural inputs and products, and pharmaceuticals for the remainder of the year.
“Suspension of Specific Taxes and Levies: For six months, the order suspends various taxes and levies, such as road haulage tax and other transportation-related charges; fees on bicycles, trucks, canoes, wheelbarrows, and carts; business premises registration; taxes and levies on shops, kiosks, and markets; animal trade and produce sales tax.”
In its Accelerated Stabilisation and Advancement Plan report, the government is considering the importation of paddy rice into the country as well as maize.
The ASAP report recommended an executive order on the importation of paddy rice to millers to stem the growing tide of food inflation across the country.
The document also recommends the following: Import duty & VAT suspension on specified items, including importation of paddy rice by millers and import duty exchange rate peg
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