The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has raised alarm over the ramifications of high and arbitrary taxation on businesses and the broader economy. During the 45th Trade Fair organized by the Kano Chamber of Commerce, Industry, Mines, and Agriculture, NACCIMA President Dele Oye highlighted that excessive taxation impedes innovation and dissuades investments, which are essential for the sustainability of enterprises. He echoed Margaret Thatcher’s caution against high taxes, asserting that they limit individual freedoms in favor of expanded governmental control. Oye articulated that, in the quest for economic prosperity, both state and local governments need to critically contemplate the long-term influences of their tax policies on businesses, promoting an environment that nurtures entrepreneurship.
Oye also voiced concerns regarding the 2024 Tax Bill, particularly its implications for businesses operating within free trade zones. He urged the Federal Government to engage in a consultative process involving the private sector before instituting significant economic policies, underscoring the necessity for such a collaborative approach to formulating taxation policies. Specifically, he criticized a memorandum from the Federal Inland Revenue Service (FIRS) that purportedly disregarded previous legal incentives granted to free trade zones by the Obasanjo administration. Oye’s appeal to reconsider certain provisions of the tax bill was underscored by calls to excise sections perceived as detrimental to business viability, highlighting the need to protect critical sectors vital for economic stability.
In discussing the theme “Non-Oil Export for Economic Prosperity,” Oye tied the future of Nigeria’s economy to the diversification of its exports. He reiterated the importance of collective effort toward achieving this aim, emphasizing that the government must implement proactive measures to improve market access for non-oil exports. He proposed strategic policies aimed at connecting local producers with global markets, which could significantly enhance Nigeria’s export capacity. Establishing trade offices in key international markets was suggested as a means to promote Nigerian products and facilitate essential business linkages.
Furthermore, Oye remarked on the potential of strategic partnerships with international trade organizations, advocating for preferential trade agreements that would bolster the competitive edge of Nigerian exports. He highlighted the importance of government-led initiatives such as trade missions to showcase local products and build connections with foreign buyers, as well as addressing barriers like unfair tariffs and logistical challenges that often hamper market entry for Nigerian goods. By leveraging diplomatic channels, the government can effectively navigate these challenges, creating opportunities for the country’s exporters.
Financial support was also emphasized as a crucial element in fostering export-oriented enterprises. Oye proposed that the government offer incentives for banks to increase lending to businesses in this sector. Such financial backing would empower local companies to scale their operations to meet the demands of international markets. This financial assistance is critical, especially for small and medium enterprises, as it enables them to enhance their competitiveness and take advantage of global trade opportunities.
Lastly, Oye stressed the need for improving the quality and standards of Nigerian exports to align with international market requirements. He advocated for governmental support in helping local businesses acquire international certifications such as HACCP, ISO, and FDA, which are vital for enhancing their credibility in global markets. In addition, he called for the implementation of robust quality control measures at ports of exit, ensuring that exports not only meet global safety standards but also satisfy consumer expectations. This multifaceted approach would not only elevate Nigeria’s export profile but could significantly contribute to the nation’s overall economic growth and stability.
