By Charles Okonji
The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has called on the Federal Government of Nigeria to engage the Organized Private Sector of Nigeria (OPSN) on how to manage and allocate the proposed $800 million to cushion the expected hardship that will emanate from the fuel subsidy removal.
The National President of NACCIMA, Ide John Udeagbala, stated this on Thursday in Lagos during the Q2 (second quarter) press briefing of 2023.
Udeagbala noted that NACCIMA was not against subsidy removal from fuel, but was concerned about the impacts of the removal on businesses, adding that it has led to the shutdown of many SMEs and increased unemployment rate in the country.
According to him, “The greater challenge is that government has not shown any tangible productive plan to cushion the impacts of the subsidy removal other than to borrow additional $800 million Dollars (statistically translating to N8000 per ordinary Nigerian) which, according to them is meant to cushion the impact of the fuel subsidy removal.
“Nigeria’s debt today stands at a whopping N77 trillion. The Federal Government should urgently fix our four refineries which have been in comatose for the past 16 years, so we can end petroleum products importation into the country.
Aside from production of basic fuel products (PMS, Diesel, among others), there are other heavier distillates and by-products of these refineries which are also critical inputs for industries such as LPFO, SRG, Carbon Black, etc.
“This, we believe, will help to generate further employment opportunities for our citizens particularly the teeming youths. It will also address the impact of fuel subsidy removal without adding additional debt burden on the nation.
“Besides, our ability to provide some basic raw materials internally will help our industries to compete better to benefit from the African Continental Free Trade Agreement (AfCFTA).”
On the Ease of Doing Business (EoDB), Udeagbala urged the government to consider the impending factors affecting the EoDB in Nigeria and implement the various solutions that the NACCIMA has suggested in time past for lasting solutions to these myriads of challenges.
He pointed out that collaboration with the OPSN and implementations of suggested solutions to these challenges will help return the economy back to inclusive growth and development.
Udeagbala said, “Nigeria was adjudged one of the 10 most improved economies in the world on the ease of doing business. However recent statistics on GDP report from Nigeria Bureau of Statistics show a degenerating ease of doing business which has put strain on the production industry of the Nigerian Economy resulting in a decline in growth rate.
“For example, Nigeria’s growth rate declined from 5.01 in Q2 in 2021 to 4.03 in Q3 of same year. It went down to 3.98 in Q4 of 2021 and in Q1 of 2022 dropped further to 3.11. this spiral decline has continued unabated.
Many of the challenges impeding the ease of doing business in Nigeria include multiple taxation, multiple exchange rates, government policies somersaults, poor infrastructure, high cost of power etc.”
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