Stakeholders urge Tinubu to address delay of inflation-relief measures

Key stakeholders in Nigeria’s import-export and manufacturing sectors have urged President Bola Ahmed Tinubu to provide immediate clarification on the delayed implementation of the inflation reduction and price stability fiscal policy measures announced earlier some months ago.

The policy, signed by President Tinubu on May 1, 2024, was intended to deliver economic relief.

However, nearly four months later, it has yet to be fully operationalised, raising concerns in the trade community about potential bottlenecks in the implementation.

The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) expressed the concerns in a letter addressed to President Tinubu and key government agencies.

The letter, signed by the council’s president, Lucky Amiwero, reflects the growing impatience among stakeholders over the lack of progress in implementing these crucial economic measures.

The council highlighted that despite the presidential directive, no clear guidelines have been issued to ensure the seamless execution of the policy, warning that this delay could have significant implications for trade and the broader economy.

Amiwero, who has served on presidential committees overseeing import clearance procedures and the implementation of fiscal policies, identified several critical areas requiring urgent clarification to prevent trade disruptions.

He said one major issue is the ambiguity surrounding the suspension of import duties and other tariffs, as outlined in paragraph two of the order.

Amiwero noted that the lack of clear descriptions corresponding to specific tariff headings could create significant bottlenecks in the clearance of goods, especially essential items like staple foods, raw materials for manufacturing, agricultural inputs, pharmaceuticals, and poultry feed.

He also noted the need for specific tariff headings related to the directive allowing authorised rice millers to import paddy rice at zero duty and value-added tax (VAT) for six months.

Amiwero said this measure, intended to boost local capacity utilisation for rice millers, requires proper clarification to prevent stakeholder confusion and ensure compliance.

Additionally, Amiwero emphasised the importance of clearly defining the suspension of VAT for the remainder of 2024 on basic and semi-processed food items, raw materials for manufacturing, electricity, public transportation, pharmaceuticals, and agricultural inputs, as outlined in paragraph four of the order.

Without clear tariff headings, he warned, there is a risk of misapplication, which could undermine the policy’s effectiveness.

The letter also stressed the urgency of implementing a fixed exchange rate of N800/$1 for import duties, as stipulated in paragraph five of the order.

Amiwero argued that this measure is essential for stabilising the domestic market, which has been severely affected by currency volatility.