Implementing regulation: Tinubu suspends import duties on staple foods, medicines and other products for six months to curb inflation

As a measure to curb inflation, the federal government plans to suspend import duties on basic foodstuffs, medicines and other essential goods for six months.

This was contained in an executive order issued by the President and seen by Nairametrics.

The document seen by Nairametrics did not contain the President’s signature, but Nairametrics can confirm the source.

The document also includes plans to abolish taxes on fertilizers, poultry feed, flour and grain.

Implementing Regulation on Inflation

The Inflation Control and Price Stability Regulation outlined in the document will mandate the Ministry of Finance and the Central Bank of Nigeria to develop a plan for the provision of soft loans to the agricultural, pharmaceutical and manufacturing sectors.

‘Import duties and other customs duties shall be suspended for a period of six months on the following products:

• staple foods;
• Raw materials and other direct inputs used in production:
• Inputs for agricultural production, including fertilizers, seedlings and chemicals
• Pharmaceutical products
• “Poultry feed, flour and cereals,” the document states.

The President is also expected to suspend VAT on diesel, certain staple and semi-processed foods such as noodles and pasta, raw materials for food production, electricity and public transport, as well as agricultural inputs and products and pharmaceutical products for the rest of the year.

Import of paddy rice

Nairametrics had previously reported that the Federal Government, in its report on the Accelerated Stabilization and Advancement Plan (ASAP) presented by Finance Minister Wale Edun, is considering importing paddy rice and maize into the country.

The ASAP report recommended an executive order for the import of paddy rice to millers to curb the growing food inflation across the country.

The document also recommends the following:

• Suspension of import duties and VAT on certain items
• Import of paddy rice by millers
• Exchange rate peg for import duties

However, the federal government’s proposed plan contradicts previous statements made by President Tinubu on food imports earlier this year.

The President in an address to the state chairmen of his All Progressive Congress (APC) had declared that his government would refrain from importing food in the hope of turning the current challenge into an opportunity for the future.

What you should know

Nigeria is facing a food crisis that threatens the stability of the country. Food prices have skyrocketed, Food inflation reached 40.5%.

• One of the most affected goods is rice, a staple food. Last year alone Rice prices have skyrocketed by 169%, reaching almost N90,000 per bag in March and April.
• This drastic increase in food prices is placing a huge burden on households across the country and further exacerbating an already fragile economy.
• It is estimated that around 31 million Nigerians could be affected by severe food shortages by August this year.
• The impact of this crisis goes far beyond economic concerns and affects health, education and the general well-being of society.

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