Get Guardian on GoogleNational President of the Association of Small Business Owners in Nigeria (ASBON), Femi Egbesola, has expressed regret that micro, small, and medium enterprises (MSMEs) are not clearly exempt from the four percent free on board (FOB) levy on imports, stating that they deserve better treatment from the government.
Two weeks ago, the authorities said manufacturers were exempted from the contentious levy. The exemptions apply to raw materials, machinery and spare parts under the Customs Tariff Charters 98 and 99. Under the agreement reached with customs and the Federal Ministry of Finance, manufacturers not yet captured under the tariff codes will be fast-tracked into the scheme, while payments already made by firms awaiting onboarding will be credited to future customs transactions.
Egbesola said there is no reason why MSMEs were not also exempted, noting that many of them would be negatively affected.
“Our members, in terms of numbers, far outweigh manufacturers and we have a good number of us on the total manufacturing value chain, supplying some inputs to manufacturers. What will happen to us? If the government wants to truly support us as we have been clamouring for, they should categorically state that we are exempted as well.
“This will help boost local production, improve backward integration and revive the economy. Other countries prioritise their MSMEs and industries because they understand how important we are, but the reverse is the case here,” he said.
He said giving them incentives is the only way to stimulate local production and ensure job provision, create wealth and boost the economy.
Urging the government to become more inclusive in its policies, he warned that if MSMEs are not encouraged and incentivised, more businesses would be forced to shut down.
“It is regrettable that over two years later and countless promises from the government and its agencies, we are yet to see a single kobo. If anyone says they have disbursed any loan to us, they should present those who received it and we would verify it because they can present some people who would claim anything. However, I can tell you categorically that none of our members have received anything as I speak,” he said.
