The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has raised concerns about the long-term effects of arbitrary taxation on businesses and the Nigerian economy. During the 45th Trade Fair organized by the Kano Chamber of Commerce, NACCIMA President, Dele Oye, warned that high taxes hinder innovation, discourage investment, and threaten the sustainability of businesses across the country.
“High taxation restricts the power of the people while giving more authority to the government,” Oye said, citing a warning from former British Prime Minister Margaret Thatcher. “As we strive for economic prosperity, we must address the long-term implications of excessive taxation on businesses. High tax burdens stifle innovation, deter investment, and threaten enterprises critical to our economic growth.”
Oye urged governments at all levels, particularly state and local governments, to consider the impact of high taxes and work towards creating a business-friendly environment that fosters entrepreneurship and economic development.
NACCIMA also called for a review of the 2024 Tax Bill, especially provisions that negatively affect businesses operating in free trade zones. Oye urged the Federal Government to adopt a more collaborative and long-term approach to taxation, warning that harsh tax policies could destabilize key sectors of the economy.
“We appeal to reconsider and withdraw the approval of the memorandum dated October 20, 2024, authored by the FIRS Chairman. It overlooks the legal basis for the incentives granted to free trade zones by President Obasanjo in 2002,” Oye added. He called for the expunging of Sections 60, 198(2), and 198(3) from the bill, the exclusion of free zone enterprises from Section 57, and the removal of the current Second Schedule from the 2024 Tax Bill.
On the theme of the event, *“Non-Oil Export for Economic Prosperity,”* Oye emphasized the importance of diversifying Nigeria’s economy beyond oil exports. He stressed that for the country to achieve sustainable economic growth, it must focus on boosting non-oil exports and creating global market access for local producers.
“The future of our economy lies in the diversification of exports,” Oye said. “The government must create strategic policies that connect local producers to international markets.” He suggested establishing trade offices in key export destinations to promote Nigerian products and build business linkages.
Oye further advocated for strategic partnerships with international trade organizations, which could secure preferential trade agreements for Nigerian products, offering a competitive edge in global markets. He also highlighted the importance of government-led initiatives such as trade missions and export-focused road shows to showcase Nigerian goods internationally.
To support export-oriented businesses, Oye proposed that the government offer financial incentives to banks to provide more loans to these enterprises. He also suggested that businesses be supported in obtaining international certifications like HACCP, ISO, and FDA to enhance the competitiveness of Nigerian exports. Improving quality control measures at ports of exit was also a key point to ensure Nigerian products meet global standards.
In conclusion, Oye called for a more comprehensive approach to policy and financial support to help businesses thrive in global markets, ultimately contributing to the nation’s economic prosperity.
