… Said that GDP could slow in Q1’22… streets N2.29trn budget allocation to fight against insecurity
… scorches a new excise tax on drinks
Members of the organized private sector have expressed pessimism about the country’s economy in the current year 2022. They believe that with the year leading up to the long-awaited 2023 election year, more attention will be paid to political issues than to economic transformation by the federal government.
PAHO, the main voice of the Nigerian business community, private sector operators and chambers of commerce across the country, stressed that the government’s revenue-seeking will be stepped up this year as the cost of doing business increases further in the past. middle of the introduction of new tariffs in an offer to consolidate its income. Speaking to New Telegraph about operators’ expectations of the federal government in 2022, MAN Chairman Engr. Mansur Ahmed, explained that companies doing business with the government should be wary and ensure payment for work done and supplies made so as not to have difficulty getting paid. The MAN coxswain pointed out that improving economic performance in Q4’21 and Q1’22 would largely depend on the ability of the government to maintain the current relative economic stability, support the productive sector and ensure the safety of people. lives and property.
In addition, Ahmed added that improving economic growth would also depend on sustained increases in the price of crude oil and an appropriate allocation of forex to the productive sector. MAN chairman said manufacturing performance would improve if forex is made available to the industrial sector for importing raw materials and machinery that are not locally available and disposable income of Nigerians is improved. . “Nigeria’s real GDP growth is expected to remain positive in Q4’21 and Q1’22. Manufacturing sector growth is expected to remain positive in Q4’21 but could slow down in Q1’22 but still in the positive quadrant, ”Ahmed said.
In his presentation, the famous economist and director general of the Center for the Promotion of Private Enterprise (CPPE), who is also the former director general of the Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, revealed that the government must do everything in its power not to let the country’s fragile GDP decline further in this new year, saying the Nigerian economy has experienced four consecutive quarters of GDP growth since the exit of the country. the recession in the fourth quarter of 2020.
Speaking further on this, the economic expert said there had been GDP growth of 0.51 percent in the first quarter; 5.01% in the second quarter; and 4.03% in the third quarter of 2021. For him, these are indications that the economy is on the road to recovery.
These could be attributed to a rebound in the national economy following the easing of restrictions on economic activities and travel within the country, the revitalization of sectors that were previously stranded after the start of Covid- 19 such as hospitality, entertainment, aviation, road transport, tourism, among others, the restoration of supply chains that were disrupted at the start of the pandemic and the recovery of the global economy following the improving investor sentiment through improved immunization in many parts of the world. Others are a rebound in commodity prices, which has had a positive impact on the macroeconomic outlook, as the price of crude oil, for example, has recorded an impressive recovery in the past two months, as well as programs to economic recovery by the monetary and fiscal authorities.
However, for the recovery to continue in 2022, Yusuf said, “It is important to create an environment conducive to positive investor sentiment in the economy. It should be motivated by politics, regulation, macroeconomic conditions, and security of life and property. “
MAN Managing Director Segun Ajayi-Kadir, for his part, said the government, in the spirit of the country’s GDP growth, should halt plans to initiate the introduction of fee collection. excise duty on carbonated and non-alcoholic beverages, stating this would be counterproductive for local manufacturers of beverages and non-alcoholic beverages in the country. Ajayi-Kadir explained that the burden of excessive tariffs on the country’s manufacturing sector by the government should be reconsidered this year for the sake of manufacturers who face multiple taxes from governments for a sector struggling against the debilitating disruptive effect of COVID-19, the unavailability of government relief funds, exchange rate volatility and, most importantly, manufacturing challenges in the country.
“We want to see the federal government end plans to introduce a new collection of excise duties on carbonated and non-alcoholic beverages in the country this year. “The burden of several taxes has strongly affected our businesses and our production. Our manufacturing sector has not yet fully stabilized because of the many straits that the manufacturing sector faces, propagated by the fiscal and monetary policies of the government. Commenting further, the MAN DG postulated that the association wants a rapid improvement in sponsorship of manufactured goods made in Nigeria, especially among government ministries, departments and agencies (MDAs) in 2022.
He therefore urged the federal government to review and strengthen Executive Decree 003 signed by President Muhammadu Buhari in 2017, requiring all MDAs to give first choice to products made in Nigeria in public procurement, only a certain number of between them were seized. this. Former President of the Lagos Chamber of Commerce and Industry (LCCI), Ms. Toki Mabogunje, while speaking on Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) agreement, said all eyes would be on the government to ensure the implementation of the program is ratified this year by the African Union (AU). Mabogunje said regional economic communities must find appropriate policy measures that will ensure swift and effective implementation of the continental trade agreement to achieve the projected revenue of $ 6.7 trillion. According to her, the Nigerian government should advocate for the final ratification of the AfCFTA implementation program in 2022 to boost the continent’s trade, income and GDP growth. “Issues related to market size, economic size, diversity, supply chain opportunities and many others will be appreciated and remembered by all AfCFTA participants.
“We also just need to recognize the reality and cost of AfCFTA which vary from country to country. “So that’s the function of our preparation. As a country, it is a function of our competitiveness, it is a function of the quality of our infrastructure, the quality of our institutions and it is also a function of the policies that we put in place. New Telegraph found that there were still issues regarding market size, economic size, diversity, supply chain opportunities, forex, trade policy, customs, tariff difference, rule origin and others to be worked out for the continental trade agreement to be a success.
In his presentation, the Chairman of the Nigerian Manufacturers Association (MAN) Corporate Affairs and Strategic Planning Committee and General Manager / Managing Director of Krisoral, Igwe Chris Oranu Chidume, Eze Ana-Ukwu, said the The business community wanted the government to reduce the continued extortion at ports this year because of its impediments to the clearance of goods. He therefore urged the federal government to ensure adequate payment of security guards to reduce the level of extortion by Nigerian manufacturers in an effort to improve business growth. According to him, the country’s ports play a key role in facilitating trade in Nigeria and the sub-Saharan region.