Federal Government of Nigeria 2012 Fiscal Policy Measures

The Central Bank of Nigeria recently released the 2012 fiscal policy measures on 20 February 2012 further reinforcing some of the fiscal policy pronouncement of Mr. President during his 2012 budget speech.

The new fiscal policy (visit www.cenbank.org) has made significant changes to the applicable duty rates for some of the basic food items consumed by Nigerians.

We have detailed some of the key changes below:

Agricultural Machinery and equipment shall attract 0% duty effective from 31st January 2012

Equipment and Machinery for the power sector shall attract 0% duty effective from 31st January 2012

Importation of Cassava shall be prohibited effective 31st March 2012

Corporate Tax incentive rebate of 12% for Bakers who attain 40% cassava blend within a period of 18 months effective from 31st March 2012

All equipment for processing cassava fluor for composite fluor blending shall be imported duty free effective from 31st March 2012

Wheat fluor shall attract a levy of 65% and 35% duty rate (a total of 100% levy on imported wheat fluor) effective from 1st July 2012

Wheat grain shall attract a levy of 15% and 5% duty effective from 1st July 2012

Husked brown rice shall attract a levy of 25% and duty rate of 5% effective from 1st July 2012

Imported polished rice shall attract a levy of 40% and duty of 10% (a total of 50% levy on imported rice)

These fiscal policies highligted above would certainly increase the cost of basic food products such as bread and rice in the coming months,However,opportunities are open for local manufacturers who intend to go into fluor and rice production locally.

How much it's cost of rice in market? I mean market price

Una never start. The recent drought in the US and parts of the world is yet to hit you all.

Kobojunkie: Una never start. The recent drought in the US and parts of the world is yet to hit you all.

what do you actually gain by being a pessimist it might start reflecting in ur life

billante:

what do you actually gain by being a pessimist it might start reflecting in ur life

What is pessimistic about the FACTS?? So calling for people to be realistic is a CRIME in Nigeria Still??

About my life, I am doing way better than you will ever do with that 'deny-reality' approach to life you have going for you there.

Kobojunkie: Una never start. The recent drought in the US and parts of the world is yet to hit you all.

inspirenet:

um . . . please consult google, if you have no idea what has been happening in the world around you and how it all affects you down there in Nigeria.

billante:

what do you actually gain by being a pessimist it might start reflecting in ur life

To be honest with you, kobojunkie is saying the truth though. I live in the states and it was announced on the news that the USA is facing the worst drought in 25 years. They even joked that people should start doing the 'rain dance' or pray for rain to fall because if we don't get enough rain soon, we in the states should expect an increase in food prices. So, na so we see am o! We are living in difficult times and it has nothing to do with being pessimistic or optimistic. It is about being REALISTIC bros.

dasparrow:

To be honest with you, kobojunkie is saying the truth though. I live in the states and it was announced on the news that the USA is facing the worst drought in 25 years. They even joked that people should start doing the 'rain dance' or pray for rain to fall because if we don't get enough rain soon, we in the states should expect an increase in food prices. So, na so we see am o! We are living in difficult times and it has nothing to do with being pessimistic or optimistic. It is about being REALISTIC bros.

Pls what concerns us with drought at d US We have plenty of rain here....I don't even understand you and kobojunkie concerning dis thread!! Govt is trying to reduce the large quantity of wheat and rice imported into nigeria every year by substituting wheat with casava and being self suffcient in rice production and u people are talking about drought in d US Is dat not even good news to nigeria!

Bill ante is naive and therefore does not appreciate that a drought in the USA will affect the World food supply and that Nigeria imports a vast quantity of it's food. I don't blame him since the present educational system in the country does not bequeath such general knowledge of the obvious vulnerability of the mono economy called Nigeria.

Seriously, what's wrong with mallam/aboki Sanusi? all these yeye and jagajaga policies must stop!
obviously the guy thinks he's some sort of 'god'. he wakes in the morning and announces whatever he likes, with
no regard 4 the poor n suffering masses.

With crops dying in the fields, the prospect of tightening supplies is driving what Barclays Capital analysts say is one of the most rapid prices spikes "in recent memory".

US corn and wheat futures contracts have both risen by a third since mid-June, the biggest four-week price gain in US grains futures seen more than a quarter of a century. On Thursday, US corn for September delivery set a record high of over $8.16 a bushel, while soybeans for August delivery also hit a record at $17.49.

The global nature of markets means that the reverberations from the US, the world's biggest corn producer as well as a major supplier of soybeans and wheat, will be felt around the world.

Alan Clarke, an economist at Scotia Capital, expects the effects of the drought to add "significantly" to UK inflation over the start of 2013, since it takes around six months before rises in agricultural commodity prices feed into prices on the supermarket shelves.

Good point

billante:

Pls what concerns us with drought at d US We have plenty of rain here....I don't even understand you and kobojunkie concerning dis thread!! Govt is trying to reduce the large quantity of wheat and rice imported into nigeria every year by substituting wheat with casava and being self suffcient in rice production and u people are talking about drought in d US Is dat not even good news to nigeria!

oh!! ROFLMAO!!!

You still don't know that much of the food you eat in Nigeria still comes from abroad? So you somehow believe that your country which continues to import well over 90% of what it consumes has somehow magically changed things since the last time? Yes, your Government is working seriously hard, yet since the last food crisis, the % dependence on foreign foods has not gone down by much. SO go plant yourself a field of cassava to substitute for much of all the imports thatg will be affected if you do not want to pay the higher prices.

Better stock up on that cassava bread ooo(if you find some) because much of the wheat that goes to making it, even if 50% still comes from the US, and I don't see how you can make them without.