NBCC Urges FG to Drop Plan to Increase Excise on Beverages, Others

Nume Ekeghe

The Nigeria-British Chamber of Commerce (NBCC) has expressed concern about reported plans by the Federal Ministry of Finance, Budget and Financial Planning to effect a hike in the specific excise component of some products, including alcoholic and non-alcoholic beverages and tobacco: a significant digression from its recently adopted 2022 Fiscal Policy Measures and Tariffs Amendments (FPM 2022) roadmap, which covers the excise expansion from 2022-2024 as approved by the president in March 2022.

The President and Chairman of Council of NBCC, Mrs. Bisi Adeyemi, in a statement noted that NBCC is calling for a thorough review of the policy considering its impact on the Nigerian business environment.

“While we understand and appreciate the need to improve Federal Government income, a holistic review of the peculiarities of Nigeria’s current micro and macroeconomic realities as well as the impact of these on businesses and Nigerians specifically, should be undertaken. This is to ensure sustainability and minimise the negative impact on the affected sectors including the value chain who will be the hardest hit. Long and medium-term plans and policies that will allow for the engagement and input of all stakeholders usually yield optimal outcomes, ”Adeyemi said.

Adeyemi added, “The manufacturing sector is currently contending with sundry issues, which include skyrocketing energy costs, rising inflation, foreign exchange scarcity, poor and inadequate infrastructure, increasing difficulties associated with ease of doing business, and other headwinds that increasingly challenge competitiveness in the global market.

“A recent report by the National Bureau of Statistics shows that the value of manufactured goods traded for the second quarter of 2022 fell by 36 per cent compared to the same period in 2021 even as manufacturers adjust to the approved excise increase in the FPM 2022, the aforementioned conditions are being exacerbated by the fragile state of the country’s economy.”