… Demand Abrogation Of Excise Taxes For 6 Months
The Organised Private Sector of Nigeria (OPSN), comprising the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association (NECA), the Nigerian Association of Small Scale Industries (NASSI), and the Nigerian Association of Small and Medium Enterprises (NASME) has strongly opposed the recently announced increase in excise rates as contained in a circular dated April 20, 2023,and signed by the Minister of Finance, Budget and National Planning.
The increase, the OPSN noted is unwarranted, ill-timed and inimical to the Nigerian economy and the manufacturing sector in particular, and called for its immediate reversal.
A statement from the OPSN secretariat jointly signed by the Director-General, MAN, Segun Ajayi-Kadir; Director-General, NACCIMA, Olusola Obadimu; Director-General, NECA, Adewale Smatt-Oyerinde; Director-General, NASSI, Engr. Ifeanyi Christopher Oputa; and Chairman, NASME, Mr. Eke Ubiji, noted: “The manufacturing sector is presently grappling with unprecedented challenges including the sustained scarcity of Naira, limited access to foreign exchange, a struggling economy and persistent inflation, alongside perennial problems of multiple taxation and epileptic power supply. These challenges have resulted in a record crash in sales for most businesses running into billions of Naira, with the result that manufacturers are struggling to remain in business, amidst looming job cuts, mothballing of factories and total shutdown of businesses. Therefore, increasing excise rates at this time is extremely ill-advised and may sound the death knell for affected businesses and their contribution to the national economy, even as the broader manufacturing sector continues to deteriorate.”
These, it stated formed the basis of its request the Federal Government should urgently reverse the increase in excise rates to protect the affected industries and the dependent businesses in their extended value chain from imminent collapse with calamitous consequences for the economy. “We further request that the Federal Government suspends excise taxes in the manufacturing sector for a minimum of six months, to arrest the alarming decline in the sector. Similar measures have been taken in countries like South Africa and the United Arab Emirates, in recent times.
We would also like to use this opportunity to request that the Central Bank of Nigeria urgently deploys measures to fully alleviate the Naira scarcity crisis and prioritise foreign exchange allocations to the productive sector.”
While acknowledging the efforts of the present administration in supporting the manufacturing sector, the OPSN said it remains confident that its request will be accorded the prompt and positive response it truly deserves in the best interest of industry, government, and the Nigerian economy at this critical time.
