Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to completely remove the four per cent Free on Board (FoB) levy and all other levies or manufacturers will pass the burden on consumers.
Speaking through its Vice President, Princess Layo Bakare-Okeowo, at the fourth quarter press conference and launch of the chamber’s Business Environment Journal held at Commerce House in Lagos, yesterday, LCCI regretted that Nigerian manufacturers pay the highest form of levies and are the only ones saddled with a FoB levy in West AfricaFoB levy in West Africa, making it harder to compete regionally with their competitors.
“We claim to be the giant of Africa but let us look at what other countries in the ECOWAS region are doing. Naturally, we won’t swallow the four per cent levy; we are going to pass it to end users.
“Just last week, we were told some of us have been categorized under one HS code and whoever is under that code can apply for an exemption. Later, we were told it only applies to people bringing in humanitarian items. What is to become of manufacturers? We are begging the Federal Government to come with clean hands. The manufacturing sector is bleeding. If the government wishes to continue heating up the economy by refusing to tame inflation, then they can go ahead with whichever levies they want.”
She said manufacturing is the bedrock of every economy and if the AfCFTA is to work for local manufacturers, they have to be able to compete favourably with other players in the ECOWAS region without the numerous levies they are saddled with.
Deputy President of the chamber, Knut Ulvmoen, said removal of fuel subsidy was the right decision as that was the only way to stabilise and ensure private players come into the sector.
Speaking on exports, he said the country must get export right and not just in the petroleum sector but more so in the non-oil sector. Decrying the energy situation in the country, deputy president of the chamber, Leye Kupoluyi, said now more than ever, companies and households need improved energy supply. He called for the lowering of tariffs, he said companies and households need cheaper and more reliable supply to function efficiently.
“We are already talking about ‘Detty December’, power and infrastructure are very important. How do we drive commerce and everything we have to offer if we have zero infrastructure and no power? Power is what supports commerce and industry and without that, we are wasting our time. If we play it well, we can kick off the Detty December as early as September and welcome visitors from all over the world to come to Nigeria but to do this, we need power and the right infrastructure.
Director-General of the chamber, Dr Chinyere Almona, noted that while some sectors like ICT and agriculture have recorded growth in the last three quarters of this year, the real sector is still wobbling.
Noting that the FG’s reforms have been very tough on the business community, she called for better support for businesses with improved guidelines and regulatory framework. She expressed optimism for better access to finance for businesses next year seeing as interest rates have slowed, adding that they hope it slows down more next year.
Hailing the resilience of Nigerians and businesses, she noted that the cost of doing business is a great concern to them. “Power is a huge problem, duties, logistics, raging insecurity and so on have raised the cost of doing business through the roof. If we are to promote made in Nigerian goods, we must have an environment that supports production of said goods. We must improve in the production of our goods and the regulatory agencies need to do more and work together with the business community to ensure that the standards of locally made goods meet international standards.
She regretted that many times, policies are made without putting the right things in place to ensure the success of the policy; adding that if the right environment to produce is not in place, it would be practically impossible for the made in Nigeria policy to succeed.
