By Ibiyemi Mathew
The Organised Private Sector of Nigeria (OPSN) has opposed the recently announced increase in excise rates as contained in the circular dated 20th April 2023, signed by the Honourable Minister of Finance, Budget and National Planning.
The OPSN which comprises of the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association (NECA), the Nigerian Association of Small Scale Industries (NASSI), and the Nigerian Association of Small and Medium Enterprises (NASME) said the increase is unwarranted, ill-timed and inimical to the Nigerian economy and the manufacturing sector.
The association also called for the immediate reversal noting that,“the manufacturing sector is presently grappling with unprecedented challenges including the sustained scarcity of Naira, limited access to foreign exchange, a struggling economy and persistent inflation, alongside perennial problems of multiple taxation and epileptic power supply.
“These challenges have resulted in a record crash in sales for most businesses running into billions of Naira, with the result that manufacturers are struggling to remain in business, amidst looming job cuts, mothballing of factories and total shutdown of businesses.
“Therefore, increasing excise rates at this time is extremely ill-advised and may sound the death knell for affected businesses and their contribution to the national economy, even as the broader manufacturing sector continues to deteriorate.
“We further request that the Federal Government suspends excise taxes in the manufacturing sector for a minimum of six months, to arrest the alarming decline in the sector. Similar measures have been taken in countries like South Africa and the United Arab Emirates, in recent times,”a statement by the association read.
The OPSN also called for the Central Bank of Nigeria (CBN) to deploy measures to fully alleviate the naira scarcity crisis and prioritise foreign exchange allocations to the productive sector.