Chika Mbonu: Nigeria’s Tariff Cuts Aim To Tame Inflation, Boost Growth

Chika Mbonu says reduced import duties are designed to lower costs, ease inflation, and stimulate economic growth in Nigeria.

ARISE Business Analyst Chika Mbonu has said the Federal Government’s new tariff adjustments are primarily aimed at reducing inflation and stimulating economic growth by lowering the cost of key imports across sectors.

Speaking in an interview with ARISE News on Monday, Mbonu explained that tariffs taxes imposed on imported goods are now being strategically adjusted to balance revenue generation, protect local industries, and address rising inflation.

According to him, the government is shifting from a protection-heavy tariff regime to a more growth-oriented approach in response to economic pressures.

“One reason is the government generates revenue from tariffs… another one also could be that, you know, it’s required to protect Nigerian local industries,” he said.

He noted that while tariffs have traditionally been used to shield domestic producers, the current economic realities have forced a rethink, particularly as inflation continues to weigh heavily on consumers.

Mbonu explained that reducing tariffs on key imports such as motor vehicles is expected to lower logistics and transportation costs, which directly influence the prices of goods and services.

“Motor vehicles, logistical costs, you know, translate immediately into inflation on goods and services,” he stated.

He added that the policy also targets manufacturers by lowering duties on raw materials and industrial equipment, enabling businesses to operate more competitively and reduce production costs.

According to him, this cost-side intervention is expected to ease inflationary pressures and support broader economic recovery.

“Raw materials coming in cheaply… that will hopefully translate to lower costs and then help in managing inflation,” he said.

Mbonu further highlighted that food imports are also being considered under the tariff reductions, as food inflation remains a major driver of overall inflation in Nigeria.

“If the duties are lower, more imports will come into the country, supply will be more, and hopefully, prices will drop,” he explained.

However, he cautioned that the policy must strike a balance between encouraging imports and protecting local industries from excessive foreign competition.

Addressing whether the policy represents a long-term reform or short-term relief, Mbonu emphasized the need for immediate economic stability as a foundation for future growth.

“You have to survive in the short term to live in the long term,” he said.

He concluded that while the tariff adjustments may provide short-term relief for consumers and businesses, their long-term success will depend on how well the government balances growth, inflation control, and local industry protection.