The Nigeria Employers’ Consultative Association (NECA) has expressed concerns over the Federal Government’s newly-introduced Fiscal Policy Measures (FPM) and Tariff Amendment for 2023.
The employers’ body equally called on the Federal government to suspend the policy, stating that while it would largely affect manufacturers, it also has the potential of disrupting the entire value chain of the organised private sector (OPS).
Director-General of NECA, Adewale-Smatt Oyerinde, in a statement, decried the recent circular by the Minister of Finance, Budget and National Planning, Zainab Ahmed, introducing the FPM, with increases ranging from 20 per cent to 100 per cent on previously-approved rates for alcoholic beverages, tobacco, wines and spirits as well as the introduction of green tax (10 per cent excise duty on single-use plastics.
He urged government to maintain status quo on the items involved.
According to him, government should, as a matter of urgency and national importance, suspend the implementation of the Fiscal Policy Measure and Tariff Amendment as proposed and revert to the 2022 Fiscal Policy Measure roadmap.
Giving insights into organised businesses’ concerns, Oyerinde said the proposed increases would naturally spike the cost of production and reduce the competitiveness of Nigerian manufacturers in both local and international markets.
Linking it with the recent reports of the unemployment rate hovering around 40 per cent, he said the nation’s economy would be further hard-pressed to withstand the likely loss of jobs that follow the increases.
- Expressing concern at the policy inconsistencies of recent years, the NECA chief added that the proposed increases, if implemented could aggravate smuggling, stifle the growth of businesses in the sector, promote the production of fake products, reduce the purchasing power of Nigerians and ultimately reduce government’s projected revenue across the
