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Business News of Friday, 2 June 2023

Source: www.nairametrics.com

FG should reduce import tariffs for food processing companies over fuel subsidy removal – CPPE

Dr. Muda Yusuf Dr. Muda Yusuf

The Centre for the Promotion of Private Enterprise (CPPE) urged the Presidency to introduce palliatives and measures to cushion the effects of the fuel subsidy removal which would address the food and transport costs for Nigerians.

This was disclosed by Dr. Muda Yusuf, the founder of the CPPE on Thursday reacting to the Fuel subsidy removal.

The CPPE chief also noted that Nigerians spend over 50% of their income on food and transport, adding that FG should also introduce a reduction in import tariffs for intermediate products for food processing companies.

Palliative measures
Dr Yusuf in an interview urged the Federal Government to introduce some palliatives that will reduce the effects of the fuel subsidy removal from the 2023 budget on its citizens.

He noted the government needed to come up with immediate and short-term measures that would mitigate the pains of the sharp increases in transportation and feeding costs on the citizens, citing that food and transportation account for over 50 percent of the household budget of the populace, noting that “something urgent needed to be done”.

Measures

The CPPE boss reacted that such measures should reduce the cost of food, provide cheaper public transportation options and improve power supply, also urging that improved power supply would help to reduce demand for fuel, electricity, generators, and incentives to promote the use of autogas, the statement added:

“There must be a reduction in import tariffs for intermediate products for food processing companies, elimination of taxes and levies on all agricultural inputs.

“This will boost food production and reduce import tariffs on mass transit buses, among others.”

NNPC strategy

He also noted that the Nigerian National Petroleum Corporation Limited (NNPCL) Premium Motor Spirit (PMS) pricing should be at least 15 percent less than the prices of private fuel stations, which he says is necessary to signal social sensitivity by the government.

“Admittedly, the increase is quite high and the shocks on citizens are enormous as well, but these are some of the inevitable costs of reforms and we need the reforms to prevent the collapse of the economy.

“Apparently, things have to get worse before it gets better.

“It would be painful, initially, but it would progressively get better.

“As the supply side response improves, the prices will moderate.”