Federal Government plans six-month suspension of import duties on essential goods

The Federal Government is planning a six-month suspension of import duties on staple food items, pharmaceuticals, and other essential products to combat rising inflation, according to an executive order issued by President Bola Tinubu.

The order, part of the Inflation Reduction and Price Stability Order, also outlines plans to waive levies on fertilizers, poultry feed, flour, and grains.

Although the document does not bear the President’s signature, it has been verified as authentic.

Key measures in the executive order include the suspension of import duties and tariffs on staple food items, raw materials for manufacturing, agricultural inputs such as fertilizers and chemicals, and pharmaceutical products.

Additionally, the President is considering suspending value-added tax (VAT) on automotive gas oil, certain basic food items, semi-processed staple foods like noodles and pasta, raw-material inputs for food manufacturing, electricity, public transportation, agricultural inputs and produce, and pharmaceutical products for the remainder of the year.

The order mandates the Ministry of Finance and the Central Bank of Nigeria to develop a plan to offer low-interest loans to the agriculture, pharmaceutical, and manufacturing sectors.

This initiative is part of the government’s broader strategy to stabilize the economy and reduce inflationary pressures.

The Federal Government’s Accelerated Stabilization and Advancement Plan (ASAP) report, submitted by Finance Minister Wale Edun, also suggests importing paddy rice and maize to tackle food inflation.

The report recommends the suspension of import duty and VAT on specified items, the importation of paddy rice by millers, and pegging the import duty exchange rate.

This proposed plan conflicts with earlier statements by President Tinubu, who had previously emphasized reducing food imports and turning current challenges into future opportunities for growth.