The Nigerian government has announced a strategy to reduce inflation through the suspension of tariffs and import duties on food, raw materials, pharmaceuticals, and agricultural inputs. This was revealed by the Minister of Finance, Wale Edun, during a presentation of the Accelerated Stabilisation and Advancement Plan (ASAP).
Edun highlighted that the plan, recently presented to President Bola Ahmed Tinubu, aims to alleviate Nigeria’s economic challenges. Currently, the country faces headline and food inflation rates of 33.69 percent and 40.53 percent, respectively, leading to significant hardship as purchasing power declines.
To combat this, the fiscal measures in the plan include suspending import duties and tariffs on essential items such as staple foods, raw materials, agricultural inputs like fertilizers and chemicals, and pharmaceutical products. Additionally, millers will be allowed to import paddy rice at zero duty and VAT for six months. The suspension of VAT will also extend to basic and semi-processed food items, agricultural produce, electricity, and public transportation for the rest of 2024.
Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, praised the plan, noting that it addresses key issues for real sector investors and could ease inflationary pressures, particularly on food. He urged the government to swiftly implement the plan for the benefit of the economy.
The announcement of ASAP comes amidst ongoing negotiations over a new minimum wage in Nigeria. A recent strike by Organised Labour was suspended after the government committed to a higher minimum wage than N60,000, with discussions continuing. Proposals for the new minimum wage range from N75,000 to N494,000, with various stakeholders weighing in on the appropriate amount.