The Nigerian government has announced a strategy aimed at reducing inflation by temporarily suspending tariffs and import duties on essential goods such as food, raw materials for production, pharmaceuticals, and agricultural inputs. The Minister of Finance, Wale Edun, presented the proposed plan, known as the Accelerated Stabilisation and Advancement Plan (ASAP), to President Bola Ahmed Tinubu. The plan seeks to alleviate the economic challenges faced by Nigerians, particularly in light of the country's high headline and food inflation rates, which currently stand at 33.69 percent and 40.53 percent, respectively.
Under the proposed measures, import duties and tariffs will be suspended for staple food items, manufacturing raw materials, agricultural inputs like fertilizers and seedlings, pharmaceutical products, and poultry feeds. Additionally, millers will be authorized to import paddy rice duty-free for six months. Value Added Tax (VAT) will also be suspended for certain items for the remainder of the year 2024, including basic food items, raw materials for food manufacturing, electricity, public transportation, agricultural inputs and products, and pharmaceutical products.
The Centre for the Promotion of Private Enterprise (CPPE) Director, Muda Yusuf, commended the proposal, stating that relaxing import duties will help curb inflationary pressures, especially in the food sector. He emphasized the importance of promptly implementing the plan to address economic concerns and foster growth in the real economy.
The announcement of the ASAP plan coincides with ongoing discussions about a new minimum wage in Nigeria. Organised Labour recently staged a shutdown of the economy to demand implementation of a higher minimum wage, which was subsequently suspended after securing a commitment from the government for a wage higher than N60,000. Negotiations on the new minimum wage, with proposals ranging from N75,000 to N494,000, are ongoing between the government and labour unions, with various stakeholders advocating for a wage increase to address economic challenges faced by workers.
