Buhari's Decision To Impose New Taxes On Nigerians Will Kill Businesses, Lead To Job Losses, Employers’ Association Warns

The Nigeria Employers' Consultative Association (NECA) has noted that the combination of a struggling aviation sector and roads taken over by bandits had worsened the economic situation in the country.  

This has resulted in 18.6 percent inflation, according to the National Bureau of Statistics. 

“These have continued to worsen the promotion of commerce and the increase the rate of de-industrialisation of some regions of the country,” NECA director-general Wale Oyerinde, said. 

Oyerinde asked for a comprehensive strategy to address the nation's economic difficulties, describing them as multifaceted, News Agency of Nigeria reports. 

There has never been a better time, according to Oyerinde, for the administration of President Muhammadu Buhari to reevaluate its economic strategies and strengthen ties with the organized private sector. 

‘’The nation is currently faced with multiple challenges: a dire combination of spiralling inflation; rising energy cost; scarcity of foreign exchange (forex); the dwindling value of the naira, and an almost comatose aviation sector. Also, a stuttering education system; rising debt; depleting foreign reserves and rising fuel subsidy expenses, among others, threaten to lay bare the country’s economy,” Oyerinde said. 

He added, “In April 2022, the World Bank warned that the rising cost of fuel subsidy could significantly impact public finance and pose debt sustainability concerns: alas, this projection is almost happening. The fiscal performance report released recently by the government confirmed the accuracy of these projections.” 

The NECA DG, therefore, called for the start of a deliberate and economic-priority-influenced approach, along with extensive consultation with stakeholders to curb the problems. 

He said, "While the challenges of revenue shortage are acknowledged, burdening businesses with new taxes or levies will be counter-productive and self-destructive action. 

“Overburdening already burdened businesses will only result in business closure and an increase in job losses, with negative consequences for our social and economic stability." 

According to him, Buhari's government should rather broaden the tax net, reduce waste in governance, and give priorities to economic projects that will stimulate the economy and provide an enabling environment for businesses to thrive.  

This, according to him, will lay the groundwork for new foreign direct investment and potentially increase foreign exchange inflows into the country, which will boost the strength of the naira. 

The NECA director-general also urged the government to repair the four national refineries and encourage the development of modular ones as a first step toward eliminating fuel subsidies entirely. 

He also urged the regime to implement interventions aimed at raising living standards to boost consumption and enterprise sustainability to foster job creation. 

‘’While forex scarcity persists, allocation of the available forex to manufacturing and other productive sectors of the economy should be given priority,” Mr Oyerinde stated