NACCIMA demands transparent financial strategy, tax relief, others from FG
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) on Friday demanded transparent financial strategy, tax relief, and fiscal policy direction, among others from the Federal Government.
Other demands include: human capital and domestication plans, security and state policing and governance and cost reduction.
“A comprehensive and transparent articulation of the government’s short-term financial strategy is imperative, replacing the current sporadic and reactionary policy dissemination.
“Clear policy signals regarding tax relief for the overburdened formal sector, alongside a defined government policy direction on pivotal issues such as food security, inflation, and infrastructure development.
“A robust human capital development plan encompassing all sectors, alongside intervention strategies for the domestication of the African Continental Free Trade Area (AfCFTA).
“Authorization for the establishment of State Police to enhance security infrastructure, ensuring the safety of citizens and the protection of economic interests.
“A commitment to curtail government expenditure, eliminating waste and inefficiencies, and reducing the disproportionate emoluments that serve a narrow political class at the expense of the nation,” the association highlighted.
The National President, NACCIMA, Dele Oye in a letter addressed to Hon. Minister of Finance and Coordinating Minister of the Economy, Federal Ministry of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun stated that the association represents the private sector, and it is seeking to engage in a constructive dialogue about the current state of our nation’s economy and its management.
He noted that NACCIMA as a collective objective is to foster a thriving economic environment that balances the needs of the public and private sectors while ensuring sustainable growth and stability.
On the state of the economy and fiscal policy, the National President said, “Our analysis reveals that while the private sector diligently fulfils its tax obligations, there is an expectation of reciprocity in the form of efficient public services and infrastructure. However, recent trends indicate that increased tax revenue does not necessarily translate into tangible enhancements in these areas. Instead, there is a discernible pattern of wealth transfer from the productive private sector to the public sector, which may not enhance economic growth.
“The cessation of fuel subsidies has yielded significant savings. Nevertheless, these funds appear to have been reallocated to the public sector rather than being invested back into the private sector to stimulate economic activity. Without clear fiscal reforms detailing the allocation and utilization of tax revenues, the economy is deprived of essential goods and services that could be provided by the private sector.”
He noted that the current approach to currency management has led to undue pressure on the Naira, exacerbated by excessive public sector expenditure and questionable foreign currency acquisitions by some corrupt private and previous public officials, as disclosed by the EFCC investigations and court proceedings.
“We advocate for a stable fixed exchange rate regime, which would provide predictability and foster investor confidence, both domestic and international,” he said.
On structural reforms and governance, he said, “The government’s promise of sweeping structural reforms in political, economic, and security sectors remains unfulfilled, nearly a year into its commitment.
“The focus seems to have shifted towards raising revenue at the expense of the productive sector, which is counterproductive. The private sector requires a transparent and coherent financial strategy, not the current piecemeal and reactionary policy-making.”
