Claims multiple taxes, extortion, corruption constrain businesses

The International Monetary Fund (IMF) has said Nigerian businesses are still dogged by a number of constraints, stressing that urgent government reforms are needed to change the narrative.

The body listed the top five business constraints to include insecurity, high interest rates, insufficient power supply, high multiple taxes, extortion and corruption.

It also said that achieving Nigeria’s projected 3.1 per cent economic growth outlook for 2024 is dependent on implementing stronger reforms.

IMF Resident Representative, Christian Ebeke, revealed this yesterday at the two-day Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024, themed: “Invest Nigeria”, which held in Lagos.

Adding that Nigeria faces acute policy tradeoffs resulting from inherited imbalances, he said higher and durable growth require macro stability and further government reforms. He said this would help the country move from the 2.9 per cent rate of 2023.

Listing first (governance, business regulations and external sector) and second generation (credit and labour market regulations, green reforms) reforms that need to be carried out, Ebeke said Nigeria can close some structural gaps by reducing governance and business regulation bottlenecks by 25 per cent, adding that if this is done, the Gross Domestic Product (GDP) output can be lifted by 6.4 per cent in the next three years.

Speaking, Minister of Marine and Blue Economy, Adegboyega Oyetola, said Nigeria’s strategic location and abundant resources present vast investment opportunities, particularly in the marine and blue economy sector.

Despite existing challenges, he said government is committed to creating an enabling environment that fosters economic growth and attracts investments.

Highlighting some government incentives designed to drive investment in the sector, including exemptions from customs duties, VAT and corporate taxes for businesses operating in free trade zones, he said they’re specifically designed to attract foreign investment, promote export-oriented businesses, and catalyse industrial development.

“Nigeria’s commitment to the African Continental Free Trade Area (AfCFTA) has created new export opportunities for the marine sector. Under the Guided Trade Initiative (GTI), Nigeria has already commenced shipments, paving the way for increased trade flows across Africa. The Federal Ministry of Marine and Blue Economy, through the Nigerian Ports Authority (NPA), has also licensed several Export Processing Terminals (EPTs), which fast-track export procedures and enhance the efficiency of trade processes under AfCFTA.

“Our commitment to the marine and blue economy is demonstrated through ongoing port rehabilitation and modernisation projects.

“To boost investment, the Nigerian government has introduced various incentives, including tax reliefs, trade zone benefits, infrastructure development, and financial support.

“I encourage the business community and investors to take advantage of such incentives to contribute to Nigeria’s economic development and be part of Africa’s promising future,” he said.

Lagos State Governor, Babajide Sanwo-Olu, said the state, being Africa’s economic hub, offers a conducive business environment, strategic location, vast market and pool of energetic talents.

He said that his administration had implemented and continued to implement policies and initiatives to attract investments, create opportunities, and drive growth, while infrastructure development remains a key area of focus for the state.

President, LCCI, Gabriel Idahosa, said that the conference is pivotal to Nigeria’s journey towards stabilising the economy and driving sustainable economic growth and development.

Idahosa said that the event was a unique opportunity to explore new avenues for investment, foster innovative partnerships and chart a course toward a more prosperous future for Nigeria and the African continent.