Nigeria’s government is considering suspending import duties on essential items like food, drugs, and fertilizers for six months to combat the country’s high inflation rate. This move aims to reduce prices and stimulate economic growth.
The proposed suspension is part of a broader plan to address Nigeria’s financial struggles, including stopping borrowing from the central bank and providing low-interest loans to key sectors. The government hopes to improve output and reduce inflation, which has surged to 33.7% in April, the highest in 28 years.
Despite previous efforts, inflation continues to rise, driven by increasing prices and a weakening naira. The government’s plan also includes suspending value-added tax on essential items like food, electricity, and public transportation to provide relief to Nigerians, at least 40% of whom live in extreme poverty.
The suspension of import duties and value-added tax is expected to boost output in key sectors, stimulate economic activity, and provide relief to Nigerians struggling with high prices. The government’s move is seen as a pragmatic step to address the country’s economic challenges and improve the living standards of its citizens.
