• Fault line increases, bleeding is intense in all sectors
The Nigerian Association of Commerce, Industries, Mines and Agriculture Associations (NACCIMA) and the Center for the Promotion of Private Enterprises (CPPE) have lamented the poor state of the economy, with almost all sectors struggling to stay afloat.
Ide John Udeagbala, President of the Nigerian Associations of Commerce, Industries, Mines and Agriculture (NACCIMA), said the situation has become alarming and governments at all levels should urgently act in concert with relevant stakeholders. In devising appropriate strategies to develop and stabilize the economy.
Speaking at the second quarter of the year press conference on socio-economic issues in Lagos, he regretted that during their first quarter press conference when they expressed great concern over the dire socio-economic conditions in the country and offered solutions to the government, nothing was done. Changed from that.
On the contrary, the situation has deteriorated and no action has been taken by the authority to address many of the issues, he said.
Despite the government’s non-response, Udegbala said they will continue to address them until they achieve an enabling business environment for economic growth and inclusive growth.
He asked the central government to urgently repair the country’s four refineries, which have been comatose for nearly two decades, to end import of petroleum products into the country, saying it would help create employment opportunities for the youth.
„It will also address the impact of fuel subsidy removal without adding additional debt burden on the country. Besides, our ability to source some basic raw materials locally will help our industries compete better to benefit from the African Continental Free Trade Agreement (AfCFTA),” he said.
On his part, Dr Muda Yusuf, Director, Center for Promotion of Private Enterprises (CPPE), said some tax and import duty measures in the 2023 fiscal policy measures will significantly affect the economy and worsen de-industrialization concerns in the economy. Some measures could increase inflationary pressures, which would affect economic growth and the manufacturing, construction and transportation sectors, he said.
Yusuf pointed out that fighting a regime of high import duty and prohibitive tax rates amid a depreciating currency is a double whammy for economic players.
He said that fiscal policy measures should ensure a good balance between revenue generation, increasing domestic production, improving the welfare of citizens, enhancing economic growth, deepening economic inclusion, facilitating job creation and recognizing social norms, beliefs and values.
Excise duty seeks to raise taxes on beverages, beverages, wines, fruit juices, energy drinks and spirits, Yusuf said, with implications for investors in the sector including a fall in sales, impact on tax revenue, direct and indirect loss. Millions of farmers who provide jobs, local inputs such as grain could lose their livelihoods, risk declining profits and shareholder value, and increase trafficking risks.
He said it was difficult to justify the 40 per cent import duty on vehicles, adding that the cost of locally assembled vehicles was beyond the reach of Nigerians and the economy had suffered massive exchange rate depreciation. Place.
He said transport costs and vehicle smuggling would shoot up.
Lamenting the 45 percent import duty imposed on iron and steel products, he said it would only lead to increased housing construction costs; It increases the risk of building collapse, encourages smuggling of iron and steel products and weakens an already struggling construction industry.
“With the 30 per cent advertisement tax and the specific levy of N75/litre, most of the wineries operating in the country will have to close down. The immediate danger is that the domestic wine market will be taken over by imported and often smuggled wines. Taxes on tobacco have also been increased, and the cigarette market is at risk of being completely taken over by smuggled tobacco products that are completely off the radar of regulatory and revenue authorities.
Lamenting that ease of doing business (EoDB) remains a mirage despite many promises of the current administration, Udegbala said multiple taxation and exchange rates, government policies, poor infrastructure, high cost of power, among other factors, hinder and scare away business opportunities. Investors. “NACCIMA as the voice of the Organized Private Sector in Nigeria (OPSN) calls on the government to consider these upcoming factors affecting the EoDB and implement the various solutions we have recommended in the past for lasting solutions to these myriad challenges.
Collaboration with OPSN and implementation of recommended solutions to these challenges will help the economy return to inclusive growth and development.
Calling for decentralization, he has paved the way for a change in the recent constitutional amendment on power generation that allows states to make laws for generation, transmission and distribution of electricity to areas not covered by the national grid system. Power sector in Nigeria. More than 85 million people in Nigeria do not have access to the national grid, making Nigeria the world’s largest energy access deficit, he said, adding that poor electricity and high energy costs are killing businesses and innovation.
NACCIMA urged the government that when the planned census is conducted, it should be an opportunity to widen the tax base of the country’s population instead of increasing tax rates on some already highly taxed individuals and OPSN companies.
“The OPSN is concerned about the many issues hindering the growth of the sector, including poor infrastructure, weak regulatory framework and institutions, lack of oversight, lack of best practices and lack of data. The rising tide of cybercrime globally and its negative consequences continue to call for the attention of Nigerians to help curb cybercrime. As technology continues to advance, innovative methods are used to commit cyber-related crimes and Nigeria is not immune to these attacks.
„Oddany rozwiązywacz problemów. Przyjazny hipsterom praktykant bekonu. Miłośnik kawy. Nieuleczalny introwertyk. Student.