Association Laments Over Economic Crisis, Calls for Economy Improvement
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Centre for the Promotion of Private Enterprise (CPPE) have called on governments at all levels to urgently work in synergy with relevant stakeholders in fashioning appropriate strategies to improve and stabilize the economy.
They lamented the deplorable state of the economy, stressing that virtually all the sectors are seriously struggling to remain afloat.
Specifically speaking at the second quarter media briefing of the year on socio-economic issues in Lagos state, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ide John Udeagbala, said that economy instability in the country has become a worrisome situation.
He expressed dissatisfaction towards the harsh socio-economic conditions in the country and proffered solutions to the government, nothing has changed since their first quarter press briefing when they expressed grave concern.
Instead, he said, the situation has degenerated and there have been no steps taken by the authority to address the multiple issues raised.
Udeagbala, said despite the unresponsiveness from the government, they would continue to address them until a conducive business environment is achieved for economic growth and inclusive development.
Calling on the Federal Government to urgently fix the country’s four refineries, which have remained in comatose for almost two decades to end petroleum products importation into the country, he said this would help generate employment opportunities for the youths.
“It will also address the impact of fuel subsidy removal without adding additional debt burden on the nation. Besides, our ability to provide some basic raw materials internally will help our industries compete better to benefit from the African Continental Free Trade Agreement (AfCFTA),” he said.
On his part, Director, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said some tax and import duty provisions in the 2023 fiscal policy measures would significantly hurt the economy and worsen de-industrialisation in the economy.
While exercise duty seeks to raise tax on beverage, drinks, wines, fruit juice, energy drinks and spirits, Yusuf said the implications of this would be a drop in sales for investors in the sector, affect tax revenue, a loss of direct and indirect jobs, millions of farmers supplying local inputs like grains may lose their livelihoods, risk of decline in profitability and shareholder value and increased risks of smuggling.
“With a 30 per cent Ad Valorem tax and a specific tax of N75/litre, most wine industries operating in the country may have to shut down. The immediate risk is that the domestic wine market would be taken over by imported and mostly smuggled wines. Tax on tobacco was also increased and the risk is that the cigarette market would be completely taken over by smuggled tobacco products, which are completely outside the radar of regulatory and revenue authorities.”
Collaboration with the OPSN and implementations of suggested solutions to these challenges will help ginger the economy back to inclusive growth and development.”
NACCIMA,therefore urged the government that when the planned census does hold, it should be an opportunity to widen the tax base of the population in the country instead of increasing tax rates and multiplying taxes on the already overtaxed few individuals and OPSN companies.
Agro Nigeria/ Foluke Ibitomi
