In an apparent move to curb rising inflation and cushion the effect of hardship in the country, the Federal Government is considering suspension of import duty and other tariffs on staple food items, raw materials and other direct inputs used for manufacturing for a period of six months.
The suspension also affected inputs for agriculture production such as fertilisers, seedlings and chemicals, pharmaceutical products, poultry feeds, flour and grains.
In an Executive Order tagged: “Inflation Reduction and Price Stability (Fiscal Policy Measures, ETC.) Order, 2024,” the suspension was approved by President Bola Ahmed Tinubu in exercise of the powers conferred on him by Section 5 of the Constitution of the Federal Republic of Nigeria (as amended), Section 38 of the Value Added Tax Act, Cap,V1, Laws of the Federation of Nigeria, 2004 (as amended).
Also, the order, effective from May 1 , 2024 stipulated that “authorise millers would now import paddy rice at zero duty and Value Added Tax (VAT) for a period of six months in the first instance in order to improve local supply and capacity utilisation of rice millers.
On importation of rice, it said that from the commencement of this order, the following measures and reliefs shall apply: “Value Added Tax, where applicable, is hereby suspended on the for the rest of the year 2024: basic food items and semi-processed staple food items such as noodles and pasta; raw material inputs for the manufacturing of food items, electricity and public transportation; agricultural inputs and produce and pharmaceutical products for a period of six months.”
Also, the order said that the Nigeria Customs Service shall ensure fast-track clearing of agricultural equipment and food items, manufacturing inputs and pharmaceutical products at the ports and aim at a minimum time reduction of at least fifty per cent.
It added: “The Minister, Special Adviser to the President on Policy Coordination, the Nigeria Customs Service, Federal Inland Revenue Service may issue implementation guidelines in collaboration with any relevant agency or other stakeholders to give full effect to this Order.
The executive order added that a “rebate on import duty is hereby granted by fixing the exchange rate for the purpose of import duties and levies at N800 to $1 for a period of six months, adding that the Federal Government, including the Federal Capital Territory Administration, shall prioritise the implementation of approved capital expenditures on basic infrastructure which were essential to stimulate productivity and improve the lives of the people.
According to the presidential order, such infrastructure include access roads to farms, solar powered food storage facilities, irrigation for dry season farming, portable water and public sanitation, stressing that a minimum of 50 per cent of the incremental revenue accruing to the FCT from PMS subsidy removal and Naira flotation shall be earmarked for this purpose, tracked and reported periodically.
It said: “States and local government councils are encouraged to adopt this measure, enhancing productivity, MDAs to facilitate productivity. The order noted that every MDA shall refrain from any action, which may negatively affect the capacity utilisation or productivity of any business or a sector.
