Following President Bola Tinubu Executive Orders to control arbitrary taxation policy in the country, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, has lamented the lack of clarity on implementation, saying it has resulted in rising costs, falling margins and capacity underutilization for businesses.
NACCIMA, which advised the Federal Government to engage with stakeholders and implement policies that are business-friendly and promote sustainable economic growth, insisted that the private sector was essential to achieving the administration’s goal of increased Gross Domestic Product, GDP, and reduced unemployment rate.
Meanwhile, President of NACCIMA, Mr. Dele Oye, who spoke at an event themed: ‘Stakeholder’s Sensitisation Workshop and Public Presentation of the 2023-2027 Trade and Investment Policies,’ organised by the Federal Ministry of Industry Trade and Investment, FMITI, lauded the FG for bringing the trade and investment policies for Nigeria to fruition, saying the policy document would set the tone for Nigerian businesses and investors to realise their potential in the local and international markets.
NACCIMA, in a statement, said “We appreciate the administration’s commitment to ensuring that Nigerian businesses are not unduly burdened by unfavourable policies. We note that the tax changes were intended to raise revenue while addressing important public health and environmental concerns.’’
However, the lack of adequate notice and clarity on the implementation of the changes has resulted in significant challenges for affected businesses, including rising costs, falling margins and capacity under-utilisation.
“We commend the decision by President Tinubu to sign executive orders deferring the commencement of the tax changes as contained in the Finance Act and Customs, Excise Tariff (Variation) Amendment Order. We also support the suspension of the five per cent Excise Tax on telecommunication services, the Excise Duties escalation on locally manufactured products, the Green Tax on Single Use Plastics, including plastic containers and bottles, and the Import Tax Adjustment levy on certain vehicles.”
Speaking, Oye added: “The policy indeed acknowledges the current challenges and opportunities created by economic globalisation and the need for Nigeria to improve her competitiveness in the global economy.
“The policy recommends measures that will strengthen our domestic industries and support our integration and anticipation in the global market. At the core of this initiative is the aim to improve Nigeria’s non-oil trade balance, use the talents of our youth and women entrepreneurs to achieve a positive trade excess. It is gratifying to see that the policy prioritises the growth of Small and Medium Enterprises, SMEs, and the informal sector, which are the backbone of Nigeria’s economy.
“The policy underscores the emphasis on enhancing the competitiveness of Nigerian businesses in a globally dynamic landscape and strengthening institutional frameworks and regulatory environment that drives trade and investment. This is indeed commendable, as it will incentivize local businesses to invest more in research, development and innovation, ultimately achieving sustained economic growth.
What is missing now is an industrial policy, that will enable these two policies to have the final handshake with the industrial policy. Using the same mechanism, we believe that the industrial policy will be in place soon.
