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Business News of Friday, 5 May 2023


NECA asks govt to stop new taxes


The Nigeria Employers’ Consultative Association (NECA) has advised the Federal Government to suspend its new excise duty, taxes and levies.

Its Director-General, Adewale-Smatt Oyerinde, in a statement, noted that the increases, if implemented, would be counter-productive, as they would aggravate the rate of unemployment, encourage smuggling, discourage foreign direct investment (FDI), reduce the purchasing power of Nigerians and promote the relocation of businesses to other countries.

“Organised businesses in Nigeria are bleeding and continue to struggle for survival,” he lamented.

Oyerinde added that, in view of the challenges faced by businesses, increases in taxes would further affect them and the quality of life of Nigerians.

He said: “The Federal Government should not leave behind a legacy of tax burdens that would endanger the fragile growth achieved in the economy on the altar of revenue generation. What the government should do is to reappraise its adherence to the principles and spirits of fiscal discipline as enshrined in various legislations. With over 60 different taxes, levies and taxes, Nigeria is fast becoming a pariah state to investors.

Oyerinde wants the protection of workers’rights as well as human and Enterprise rights.

“Worker’s rights encompasses a range of issues, including living wages, decent work, access to medical care, safety and health at work, bridging gender gaps, and freedom from discrimination, among others.

“These rights thrive in an environment that promotes socio-economic justice. All these are in the different International Labour Organisations (ILO) fundamental instruments, which Nigeria is a signatory to,” he added.

He urged Organized Labour and all stakeholders that no effort should be spared in promoting and defending Institutions that have been created to advance industrial harmony and social dialogue.

This is even as he stressed that for wealth to be created and equitably distributed, there must be a hospitable, peaceful and productive environment.

“While there will always be misalignment of interests and perspectives, we must continue to deepen our engagement through social dialogue with the view of leaving a long-lasting legacy of productivity, equitable distribution of wealth and social justice for generations unborn,” he said.