Dike Onwuamaeze
The federal government has been advised to put on hold any move to impose excise duty on any segment of the Nigerian manufacturing sector.
This advice was given by an economist and private sector advocate, Dr. Muda Yusuf, who described such move as ill-timed, insensitive and most inappropriate because of the prevailing harsh economic and difficult business conditions in Nigeria.
Yusuf, who is the immediate past director general(DG) of the Lagos Chamber of Commerce and Industry (LCCI), said that the re-introduction of the excise duty would negate the economic recovery and job creation aspirations of the federal government and worsen the plight of many upcoming small businesses in the beverage sector.
He said: “Millions of micro enterprises in the soft drinks’ distribution chain will be adversely impacted by the imposition of the excise tax. This is detrimental to the job creation and poverty reduction commitment of President Muhammadu Buhari.
“Nigerian manufacturing companies, and indeed most investors, are going through tremendous stress at the moment. They are currently grappling with serious macro-economic challenges and structural constraints impacting on capacity utilisation, productivity and competitiveness. This is affecting sales, turnover, profitability, shareholder value and the sustainability of investments.
The norm globally at this time is to provide incentives for industries to aid their recovery from the shocks of the pandemic and escalating costs. We cannot afford to be doing the exact opposite. Manufacturers, across all product segments need a respite, especially in the light of the unprecedented escalation of production and operating costs.”
Yusuf argued that in the light of the above challenges, the proposition to re-introduce excise duties on a segment of the food and beverage industry should be put on hold. “The excise duty proposition is not consistent with the desire of Mr. President to create jobs and to lift hundred million people out of poverty in ten years. If anything, it is a negation of the President’s aspiration on job creation and alleviation of poverty. We implore the National Assembly and the Federal Ministry of Finance,” he said.
