JUST IN: FG Suspends Import Duty On Food Items, Others To Ease Hardship

The Federal Government has suspended import duty and other tariffs on staple food items, raw materials, and inputs for manufacturing, agriculture, and pharmaceutical products for six months.

This move is aimed at reducing inflation and stabilizing prices.

According to an Executive Order signed by President Bola Ahmed Tinubu, the suspension affects essential items like fertilizers, seedlings, chemicals, poultry feeds, flour, and grains. The order also grants a rebate on import duty by fixing the exchange rate at N800 to $1 for six months.

To enhance productivity, the government has directed the Nigeria Customs Service to fast-track the clearing of agricultural equipment, food items, and manufacturing inputs at ports, aiming to reduce clearance time by at least 50%.

The order encourages states and local government councils to adopt similar measures to boost productivity. It also mandates government agencies to refrain from actions that may negatively impact businesses or sectors.

This move is expected to improve local supply and capacity utilization in various industries, including rice milling. Authorized millers can now import paddy rice at zero duty and VAT for six months.

The order added that the government shall prioritize the implementation of approved capital expenditures on basic infrastructure, including access roads to farms, solar-powered food storage facilities, and public sanitation. It added that at least 50% of the incremental revenue from PMS subsidy removal and Naira flotation will be earmarked for this purpose.