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Business News of Friday, 2 June 2023


Review unfriendly fiscal policies, manufacturers tell Tinubu

President Bola Ahmed Tinubu President Bola Ahmed Tinubu

The Manufacturers Association of Nigeria has called on President Bola Tinubu’s administration to review all fiscal policies that were not business-friendly and were implemented by the immediate past government.

The association called for a reversal of the violation of the government’s three-year excise escalation roadmap on alcoholic beverages and tobacco by former President Muhammadu Buhari’s administration.

MAN stated this in a statement signed by its Director-General, Segun Ajayi-Kadir, reacting to the new president’s inauguration speech.

The statement read partly, “We also expect that, in line with his promise to enable a supportive fiscal policy regime, Mr President will order a reversal of the unwarranted violation of the government’s three-year excise escalation roadmap on alcoholic beverages and tobacco.

“As we have shown, the latest hike as contained in the 2023 Fiscal Policy Measures is not only going to ruin the affected sectors, it will be counterproductive for government revenue in the near future. Our infrastructure has remained inadequate and so the ongoing efforts of the government have to be intensified and this again was mentioned by the newly inaugurated President.”

According to the manufacturers, in addition to pursuing the unification of the exchange rate, the CBN should be prevailed upon to take effective action to give priority to the allocations of foreign exchange to the productive sector, particularly to manufacturers to import raw materials, spares, and machinery that are not locally available.

It urged the government to direct the Nigerian Electricity Regulatory Commission to admit all qualified applicant companies into the Eligible Customer Scheme in order to allow them access to power as stipulated in the Electric Power Sector Reform Act 2005.

It also asked the new government to direct all relevant agencies of government to ensure that the electronic call-up system at ports aimed at redressing the congestion work successfully.

MAN further prayed the government “revisit the Finance Bill 2022 to ensure it includes the critical inputs of the organised private sector”.

“In particular, the jettisoning of the highly objectionable removal of the 10 per cent investment allowance on the acquisition of plants and machinery (in the Company Income Tax Act, section,” it stated.

Additionally, the association said that to ensure that the imposition of the 0.5 per cent levy on eligible imports from third countries was limited to goods that could be produced locally.

“And quite importantly, the government should exclude raw materials that are not locally available,” MAN added.

It also asked that the input of the Organised Private Sector on the CEMA bill should also be taken on board before the amendment bill before signing it into law.

The association suggested to the government to announce a special policy initiative to address the revival of closed and distressed industries, particularly in the northeast where 60 per cent of its member companies had closed.