The Nigeria Employers’ Consultative Association (NECA) has advised President Muhammadu Buhari to widen the country’s tax net.
NECA’s Director-General (DG), who made this submission, said the tax net, amongst other factors, can leverage Buhari in resolving Nigeria’s economic woes.
Highlighting some of the challenges as an acute shortage of foreign exchange (FX), the dwindling value of the naira, rising energy costs, and inflation, the NECA chief noted, in a statement that aside from widening tax net, the Buhari-led government also need to reduce wastage in government for things to work out.
“The nation is currently faced with multiple challenges: with a dire combination of spiralling inflation; rising energy cost; scarcity of foreign exchange (FX); dwindling value of the naira and an almost comatose aviation sector.
“Also, stuttering education system; rising debt; depleting foreign reserve and rising fuel subsidy expenses among others, threaten to lay bare the country’s economy.
“While government’s effort to salvage the economy is commendable, there is, however, a need for a more holistic approach to resuscitate the stuttering economy.
“While the challenges of revenue shortage are acknowledged, burdening businesses with new taxes or levies will be counter-productive and a self-destructive action,” he said.
“Over-burdening already burdened businesses will only lead to business closure and an escalation of job losses with consequential effect on our social and economic stability.
“Government should, in the short-term, widen the tax net, reduce wastage in governance, and focus on economic projects that will stimulate the Nigerian economy and guarantee an enabling environment for businesses to operate.
“An enabling environment for local businesses will create the platform for new foreign direct investment, which could increase foreign exchange inflow into the country,” the statement quoted him as saying.
