Nigeria has implemented some measures to ease inflation, with the Federal Government reportedly planning to suspend import duties on staple foods, drugs, and other essential items for six months.
According to Bloomberg, President Bola Tinubu is also considering the possibility of waiving taxes on fertilisers, poultry feed, flour, and grains.
The document, the news medium said, is awaiting Tinubu’s approval. It added that the Federal Government is also planning to stop borrowing from the Central Bank of Nigeria (CBN) through so-called ways and means advances.
READ ALSO: Inflation, naira depreciation plunge Nigerians to lowest wage earners
Combined with the plan to suspend some value-added taxes, Tinubu’s administration believes that it will get its finances in order, thereby improving Nigeria’s economy.
The Federal Government has decided to take these steps after the inflation rate in Nigeria increased to 33.69 per cent in April from 33.20 per cent in March 2024.
Meanwhile, the inflation rate in Africa’s most populous nation is expected to hit 33.50 per cent by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations.
READ ALSO: Nigeria’s inflation rate hits 33.20%
The major cause of inflation in the country is the depreciation of Nigeria’s currency, the naira, which has in turn led to increased import costs.
Nigeria is an import-dependent economy, and Nigerian importers are purchasing goods at prices that are already very high abroad.
The costs of these goods have also gone up because of higher tariffs caused by the depreciation of the naira.
READ ALSO: Nigeria’s headline inflation maintains upward swing, hits 33.69%
The naira a few months ago appreciated against the dollar, but in recent weeks, the table appears to have turned again, with Nigeria’s currency suffering further depreciation.
