The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has issued a strong call to action for the country’s Finance Minister, Olawale Edun. In a statement following their visit to the minister, NACCIMA President Dele Oye outlined several key requests aimed at fostering a more transparent and supportive environment for private sector growth.
Oye emphasized the critical role played by the private sector in Nigeria’s economic well-being, highlighting their diligent fulfillment of tax obligations. However, he expressed concern over a perceived lack of reciprocity from the government. NACCIMA’s findings suggest that increased tax revenue doesn’t translate into tangible in public services and infrastructure, essential for a thriving private sector.
Specifically, Oye pointed to the questionable allocation of funds saved from the fuel subsidy cessation. While applauding the cost savings, he questioned their use, suggesting they haven’t been reinvested in the private sector to stimulate economic activity. This lack of clear fiscal reforms regarding tax revenue allocation and utilization is seen as hindering the provision of essential goods and services by the private sector.
NACCIMA presented a comprehensive list of requests addressed to the Finance Minister:
- Articulation of a transparent short-term financial strategy: Businesses seek clarity on the government’s financial plans and tax policies, aiming for better predictability and informed decision-making.
- Tax relief for the overburdened formal sector: Recognizing the significant tax burden shouldered by businesses, NACCIMA asks for relief measures to encourage investment and growth.
- Defined policy direction on key issues: Clear and consistent policies are crucial for businesses to navigate challenges related to food security, inflation, and infrastructure development.
- Robust human capital development plan: Investing in all sectors of the workforce is seen as essential for long-term economic success.
- Intervention strategies for the African Continental Free Trade Area (AfCFTA): NACCIMA urges the government to develop strategies to capitalize on the opportunities presented by the AfCFTA.
- Authorization for state police: Strengthening security infrastructure through state police is seen as vital for protecting citizens and fostering economic activity.
- Commitment to curtail government expenditure: NACCIMA advocates for eliminating waste and inefficiencies in public spending, redirecting resources towards critical areas.
- Full adoption of AfDB’s special agro-industrial processing zones: Implementing these zones is seen as key to bolstering food security, exports, and employment.
- Strengthening local development banks: Providing single-digit interest rate loans can significantly support entrepreneurship and existing businesses.
- Establishment of industrial clusters: Joint ventures between government and private investors could spur industrialization and job creation across various states.
- Expanding Bank of Industry’s role: Financing sectors beyond the industrial realm could help reduce dependence on foreign exchange.
- Addressing forward contracts: Revisiting and honoring documented forward contracts would enable commercial banks to effectively manage risks associated with letters of credit.
NACCIMA’s statement reflects the concerns and aspirations of Nigeria’s business community. By addressing these requests, the government can create a more conducive environment for private sector growth, ultimately leading to a more prosperous and sustainable Nigerian economy.
Source: The People gazette