The Nigeria Employers Consultative Association (NECA) said Wednesday that Nigeria risks being a dumping ground following ratification of the African Continental Free Trade Agreement (AfCFTA) by President Muhammadu Buhari.
Briefing State House correspondents after a meeting with President Muhammadu Buhari at the Presidential Villa in Abuja, Director General of NECA Mr Timothy Olawale said if infrastructure and power challenges have not been addressed, Nigerian businesses would not be able to compete with their counterparts on the continent.
He said if Nigeria cannot compete in the market with other African countries, it would eventually become a dumping ground for goods produced elsewhere.
He said: ”Africa Continental Free Trade Area (AfCFTA), agreement is laudable. There are lots of benefits inherent in it. We also know that it is capable of endangering capital inflow into the country.
“However, before we start talking about benefits derivable from it, we must also talk of the likely damage it can do to an economy that is fragile like ours, which behaves on us as stakeholders and government to put all hands on deck to address those issues.
“Those issues bother on those variables that will ensure the competitiveness of Nigerian businesses and industry. We don’t want a situation where our businesses are not competitive due to the disadvantage environment they operate.
“Of course we are all familiar with the disadvantaged environment with regards to issue of agriculture among which is power and the issue of road network, that is transportation for goods and services and accessibility to the different business environment.
“What we are saying is that if all these issues are not addressed properly, to make our businesses competitive, definitely we are going to be at the receiving end, to the extent that our nation will become a dooming ground. And even some of the factories that are even struggling presently may end up folding up.
“Of course we know the history of the textile sector and that can be repleted in any sector and we don’t want us to get to that extent. That is why we are saying government should put mechanism in place to address these issues so that we can be competitive and so that we can take our rightful place and maximize the benefits of the Africa Continental Free Trade Area agreement.”
The NECA Director General also expressed concern over government’s plans to increase taxes, saying that such increase would kill businesses in the country.He said the private sector is already being burdened with 105 taxes and levies, warning that any attempt to increase Value Added Tax (VAT) as being proposed would be a serious burden on the country’s economy.
“Basically, what we told the president is what we have repeated over and over again in the public domain, that rather than any increase in taxation because as it is, organized businesses are already being overburdened with all sorts of taxes and levies.
“As a matter of fact, we have calculated 105 different taxes and levies we are paying as we speak, which is cumbersome and burdensome. So, we had advised that rather than resort to any form of increase in taxation, what government should be looking at is putting mechanism in place to widen the tax net in such a way that almost 65 percent of non-compliant tax payers are captured in the tax net. That way, more revenue will accrue into the coffers of the government.
“We specifically also voiced are concerned with the suggestion and proposal out there that Value Added Tax should be increased. We have advised government that if it comes to be, it will reduced the purchasing power of Nigerian workers as well as the poor masses that the president as we know is working hard to improve their lot.
“We are saying that if government must as a matter of an avoidable necessity increase VAT, it should target luxury goods as well as the extra affluence in the society, not the poor masses or consumption goods and services that are for the benefit of the masses,” he said.
