Taiwo Oyedele, a fiscal policy partner at Price Waterhouse Coopers (PwC), has explained how the four executive orders signed by President Bola Tinubu on Thursday will affect Nigerians. Oyedele emphasized that the orders would prevent an increase in prices for certain essential goods and services, alleviating the burden on low-income individuals.
Among the executive orders signed by Tinubu were the suspension of the five percent excise tax on telecommunication services and the escalation of excise duties on locally manufactured products. Oyedele, speaking on Channels Television Politics Today, clarified that while the prices of some goods and services may not decrease, the new executive orders will ensure that prices do not increase either.
“The four executive orders, in addition to postponing the commencement dates for the final start and the customs and excise tariffs amendment order, suspend the excise tax on telecommunication. This means you won’t have to pay more for your telecommunication services,” explained Oyedele. “So, for those who purchase airtime and data, prices will not reduce but will not increase as planned. The tax that was meant to increase has now been suspended.”
Oyedele further pointed out that the significant escalation of excise duties on tobacco and alcoholic beverages has also been prevented. Without the executive orders, individuals purchasing these products would have experienced higher prices. Additionally, the import duties and levies on vehicle imports, which already stand at about 40 percent, have been suspended by President Tinubu.
“This is good news for the ordinary person on the street. It will ease our current burdens and prevent further complications and worsening conditions due to additional taxes,” Oyedele stated.