Nigeria Employers’ Consultative Association (NECA) has commended the federal government for initiating key reforms aimed at improving Nigeria’s business climate and reducing the cost of doing business in the country.
National President of NECA, Mr. Ifeanyi Okoye, gave the commendation in his welcome address during the 68th Annual General Meeting of the association, held in Lagos on Wednesday.
Okoye said the reforms included Nigerian Tax Act 2024, regulatory reform initiatives, and the renewed hope Buy Made in Nigeria.
He said multiple taxation was a longstanding issue and a major concern that had undermined the private sector’s competitiveness by increasing operational costs, inflating product prices, reducing sales, and, ultimately, eroding profits.
Okoye stated, “We, therefore, commend the federal government for enacting the Nigerian Tax Act 2024.
“We particularly acknowledge the Act’s business-friendly provisions, including the phased reduction of Company Income Tax (CIT) from 30 per cent to 25 per cent, the consolidation of over 50 minor taxes, tax relief for small businesses earning below N50 million annually, and the exemption of essential commodities from Value Added Tax (VAT).”
He urged the government to ensure full and effective implementation of the Act in order to realise tangible improvements in the cost of doing business.
The NECA president also commended the government for initiating moves that could address multiple regulatory burdens imposed on businesses by various government agencies at federal, state, and local levels.
He said, “These overlapping and often conflicting mandates among Ministries, Departments, and Agencies (MDAs) have led to excessive charges and hindered the ease of doing business.
“This situation adversely affects the competitiveness of locally produced goods and services.
“We, therefore, appreciate the federal government’s ongoing efforts to streamline regulatory frameworks through the Presidential Enabling Business Environment Council (PEBEC).
“We commend the leadership of PEBEC for initiating critical reforms and, in particular, for establishing the PEBEC Regulators’ Forum (PRF), which provides a platform for resolving operational and regulatory bottlenecks.
“We hope the forum prioritises the harmonisation of regulatory functions among government agencies to eliminate duplications and inefficiencies.”
Commenting on the Buy-Made-in-Nigeria policy of the President Bola Tinubu administration, Okoye said poor patronage of locally made products had long hindered the growth of Nigerian businesses.
He said the poor patronage persisted, in spite of earlier interventions to address it through Executive Orders 003 and 005 that were issued by late President Muhammadu Buhari’s administration.
“We, therefore, applaud President Bola Ahmed Tinubu for approving the ‘Renewed Hope Nigeria First’ policy,” Okoye stated.
“This directive mandates all federal Ministries, Departments, and Agencies to give priority to Nigerian-made goods, services, and expertise in public procurement,” he added.
The NECA president stated that public procurement was a vital fiscal tool for stimulating domestic production, supporting private sector growth, and enhancing national competitiveness.
He said, “NECA remains committed to engaging with relevant government bodies, particularly in Monitoring and Evaluation (M&E), to ensure proper and effective implementation of this important policy.”
NECA also commended Central Bank of Nigeria (CBN) for its recent reforms and interventions, which had begun to stabilise the monetary environment.
It, however, stated that more coordinated efforts were required to align foreign exchange (FX) and interest rate policies.
According to NECA, an improvement in FX availability will strengthen the naira, leading to lower inflation and interest rates.
NECA expressed concerns over the manner the National Assembly had been carrying out its oversight functions, to the detriment of the organised private sector.
Okoye said, “We are deeply concerned about the increasing frequency of invitations extended to our member-companies by various committees of the National Assembly, often on matters that fall within the jurisdiction of the executive arm of government.
“These frequent summonses are disruptive and costly, causing undue financial strain for businesses.
“It is important to note that the powers, functions and scope of responsibilities of each arm of government are provided by the Nigerian constitution.
“Unfortunately, there are growing attempts to amend the constitution to grant such powers to the lawmakers, a move we believe undermines the principle of separation of powers.
“Granting oversight of private entities to the legislature would result in a duplication of executive responsibilities and directly conflict with the Ease of Doing Business initiative aimed at reducing the cost of doing business in Nigeria.”
Okoye called on the federal government to formulate a comprehensive anti-counterfeiting law that would push back the avalanche of counterfeiting of local goods, which had become rampant and deeply entrenched.
NECA lamented that Nigerian markets were flooded with counterfeited products manufactured or distributed by unscrupulous individuals, often in collusion with foreign collaborators.
He stated, “As a result, legitimate companies suffer significant losses in quality perception, market share, and profitability.
“Regrettably, Nigeria lacks a comprehensive anti-counterfeiting law. Existing provisions are scattered across the Trademarks Act, Copyright Act, and Patents and Designs Act, as well as within the mandates of agencies like NAFDAC and SON.
“While these fragmented laws provide some protection, there is an urgent need for a consolidated and specific Anti-Counterfeiting Law that focuses on local products and includes stringent punitive measures and enforcement to deter offenders.”
Dike Onwuamaeze
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