Ramp up fiscal stimulus, non-cash interventions, LCCI urges FG

The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, has urged the Federal Government to provide multiple fiscal stimulus and non-cash interventions to cushion the economic burden on businesses and households.

Commending some recent policy decisions which she said are quick impact fiscal interventions that can ease the harsh economic conditions, she said the LCCI is hopeful that the removal of value-added tax (VAT) on diesel and cooking gas would reduce the prices of the essential commodities, thereby alleviating the burden on businesses and households.

“Implementing the VAT Modification Order 2024 and the Notice of Tax Incentives for Deep Offshore Oil and Gas Production are significant fiscal incentives that can revitalize Nigeria’s oil and gas sector.

“For too long, the high cost of diesel has weighed heavily on the manufacturing sector, logistics, and transportation, while cooking gas, a cleaner and healthier alternative for households, has been made less affordable by VAT impositions. This policy shift will hopefully lower the operational costs for industries, reduce the overall cost of living for Nigerians and increase home access to clean energy.

“The successful transition to CNG mobility requires all the possible incentives to speed up the deployment. The tax reliefs for deep offshore oil and gas production could boost oil and gas sector investments,” she said.

Expressing optimism about the government’s efforts towards transitioning to compressed natural gas (CNG) as an alternative fuel for mobility, she urged the government to expand the infrastructure for CNG refuelling stations across the country.

“The success of CNG mobility depends heavily on public acceptance and understanding of its benefits. A comprehensive awareness campaign should be launched to educate citizens and businesses on the cost advantages to individuals and the positive environmental impact of CNG adoption.

Also, transitioning to CNG requires vehicle modifications, which can be cost-prohibitive for individuals and small businesses. The government should consider creating incentives or subsidies for vehicle owners to convert their engines to run on CNG,” she said.