Nigeria Plans to Temporarily Waive Taxes on Specific Food Imports

LAGOS, July 8 (Reuters) - Nigeria is set to suspend taxes on specific food imports, including wheat and maize, for 150 days in an effort to control rising prices, according to the country's agricultural minister. This initiative is part of a broader strategy to combat food inflation, which has surged to over 40% year-on-year, and to stimulate economic growth that has remained fragile for nearly a decade.

In response to concerns about food supplies and pricing, President Bola Tinubu has directed his economic management team to develop a 2 trillion naira ($1.33 billion) stimulus plan to support key sectors, the finance minister revealed last week. Agricultural Minister Abubakar Kyari announced that the government will import 250,000 metric tons of wheat and 250,000 metric tons of maize, in addition to private sector imports. These commodities will be brought in semi-processed and aimed at small-scale processors and millers.

Food inflation in Nigeria has escalated due to security issues in major food-producing regions and inadequate infrastructure linking farms to markets. The tax waiver will apply to food commodities entering Nigeria through both land and sea borders.

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 Source - Reuters, July 2024