NACCIMA Says President Tinubu’s Promises On Sweeping Structural Reforms Unfulfilled

 

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has flayed President Bola Tinubu’s administration, stating that the sweeping structural reforms in political, economic, and security sectors that were promised during electioneering remain unfulfilled, nearly a year into government.

The association noted that the President, during the election campaign promised structural reforms of every sector but had shifted focus to raising revenue, chiding the federal government for not reciprocating the gesture of the private sector which had diligently fulfilled its tax obligation.

“The focus seems to have shifted towards raising revenue at the expense of the productive sector, which is counterproductive. The private sector requires a transparent and coherent financial strategy, not the current piecemeal and reactionary policymaking,” said Dele Oye, NACCIMA National President in a letter to Wale Edun, the Finance Minister and, Coordinating Minister for the Economy.

According to him, the recent trends have shown that increased tax revenue does not necessarily translate into tangible enhancements in these areas. Instead, there is a discernible pattern of wealth transfer from the productive private sector to the public sector, which may not enhance economic growth.

“The cessation of fuel subsidies has yielded significant savings. Nevertheless, these funds appear to have been reallocated to the public sector rather than being invested back into the private sector to stimulate economic activity.

“Without clear fiscal reforms detailing the allocation and utilization of tax revenues, the economy is deprived of essential goods and services that could be provided by the private sector,” he noted in the letter.

The association punctured every policy of the government including the current currency management by the Central Bank of Nigeria (CBN) which it said has piled undue pressure on Naira, the local currency, advocating for a stable fixed exchange rate regime with predictability to foster investors’ confidence.

However, on behalf of the private sector, NACCIMA requested, a list of measures to improve the economy from its current state and these include, a transparent Financial Strategy, detailing a comprehensive and transparent articulation of the government’s short-term financial strategy is imperative, replacing the current sporadic and reactionary policy dissemination.

“Tax Relief and Fiscal Policy Direction: Clear policy signals regarding tax relief for the overburdened formal sector, alongside a defined government policy direction on pivotal issues such as food security, inflation, and infrastructure development.

“Human Capital and Domestication Plans: A robust human capital development plan encompassing all sectors, alongside intervention strategies for the domestication of the African Continental Free Trade Area (AfCFTA).

“Security and State Policing: Authorization for the establishment of State Police to enhance security infrastructure, ensuring the safety of citizens and the protection of economic interests.

“Governance and Cost Reduction: A commitment to curtail government expenditure, eliminating waste and inefficiencies, and reducing the disproportionate emoluments that serve a narrow political class at the expense of the nation.

“Agribusiness and Food Security Initiatives: Full adoption and expeditious implementation of the African Development Bank’s Special Agro-Industrial Processing Zones (SAPZs) to bolster food security, exports, and employment opportunities.

“Entrepreneurial Financing and Industrial Development: Enhancement of local development banks’ capacities to offer single-digit interest rates.

“Entrepreneurial Financing and Development: We advocate for bolstering the capacity of local development banks to provide single-digit interest rate loans, fostering entrepreneurship and supporting both existing businesses (brownfield) and new ventures (greenfield).

“Industrial Clusters and Joint Ventures: We recommend the establishment of industrial clusters across various states through joint venture arrangements among the Federal Government, state governments, development partners, and private investors, aimed at stimulating industrialization and job creation.

“Expansion of the Bank of Industry (BOI): We suggest expanding the role of the BOI to finance sectors beyond the industrial realm that can reduce the demand for foreign exchange. This includes high-quality educational and healthcare institutions. Moreover, we propose renaming it to the Business Development Bank of Nigeria to reflect its broader mandate.

“Foreign Exchange Contracts: We urgently appeal to the Honorable Minister to engage with the Central Bank of Nigeria (CBN) Governor to revisit and honour forward contracts that are backed by proper and compliant documentation, ensuring that commercial banks can use these hedges effectively against each letter of credit opened.

“Reconstitution of MDA Boards: We request the reconstitution of boards of various Ministries, Departments, and Agencies (MDAs) to enhance their performance, notably reinstating members from the Organized Private Sector of Nigeria (OPSN) onto the board of the Nigerian Customs Service, as the current government-appointed nominees do not represent our interests.”