President Bola Ahmed Tinubu demonstrates unwavering dedication to the people of Nigeria.
By: Abayomi Odunowo
Inflation Reduction and Price Stability (Fiscal Policy Measures, etc.) Order, 2024 is a significant step taken by the President of the Federal Republic of Nigeria, Bola Ahmed Tinubu, to address the issue of inflation and ensure price stability in the economy. Inflation refers to the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of a nation’s currency. It can have a detrimental impact on the economy, leading to reduced consumer spending, lower investment, and overall economic instability. Therefore, it is crucial for the government to implement measures to reduce inflation and maintain price stability.
The Order, which came into effect on the 1st day of May, 2024, outlines various measures and reliefs aimed at addressing the issue of inflation in Nigeria. One of the key measures introduced in the Order is the suspension of import duties and tariffs on essential items such as staple food items, raw materials for manufacturing, agricultural inputs, pharmaceutical products, poultry feeds, flour, and grains. This move is aimed at reducing the cost of importing these essential goods, making them more affordable for consumers and businesses. By reducing import duties and tariffs, the government hopes to lower production costs for manufacturers, leading to lower prices for consumers.
Another important measure introduced in the Order is the authorization for millers to import paddy rice at zero importation duty and Value Added Tax (VAT) for a period of six months. This decision is intended to increase local supply and capacity utilization of rice millers, thereby reducing the cost of rice for consumers. Rice is a staple food in Nigeria, and any fluctuations in its price can have a significant impact on the cost of living for many Nigerians. By allowing millers to import rice at zero duty, the government hopes to stabilize rice prices and ensure food security for the population.
The Order also includes the suspension of VAT on certain essential items for the rest of the year 2024. This includes basic food items, semi-processed staple food items, raw material inputs for food manufacturing, electricity, public transportation, agricultural inputs and produce, and pharmaceutical products. By suspending VAT on these items, the government aims to reduce the cost of living for ordinary citizens and make essential goods more affordable. This move is expected to increase consumer purchasing power, stimulate demand, and ultimately help to lower inflation rates in the country.
Overall, the Inflation Reduction and Price Stability (Fiscal Policy Measures, etc.) Order, 2024, is a bold and proactive step taken by the Nigerian government to combat inflation and ensure price stability in the economy. By implementing measures such as tariff suspension, VAT variation, and import duty waivers, the government aims to reduce the cost of essential goods, increase local production, and improve overall economic stability. It is hoped that these measures will lead to lower inflation rates, increased consumer spending, and improved living standards for the people of Nigeria.
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
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