NACCIMA, OPS Caution on Impact of Arbitrary Taxation on Businesses, Economy

Oluchi Chibuzor

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Organised Private Sector (OPS) have expressed concerns over the long-term implications of arbitrary taxation on businesses and the nation’s economy.

Speaking at the 45th Trade Fair hosted by the Kano Chamber of Commerce, Industry, Mines, and Agriculture (KACCIMA), NACCIMA President, Dele Kelvin Oye, emphasised that high taxes hinder innovation, stifle investment, and pose a threat to the sustainability of enterprises.

Oye specifically called for a review of sections of the 2024 Tax Bill, citing provisions that negatively impact businesses, particularly those operating within free trade zones, and therefore urged the Federal Government to adopt a more collaborative and long-term approach to taxation policies so as not to destabilize critical sectors of the economy.

According to him, “As Margaret Thatcher warned, we should be wary of high taxes. High taxation restricts the power of the people while giving more authority to the government. As we strive for economic prosperity, I must also draw attention to the issue of arbitrary taxation. I urge all levels of government in Nigeria, especially state and local governments, to consider the long-term implications of high taxation on businesses.

“High tax burdens can stifle innovation, deter investment, and threaten enterprises critical to our economic growth. Let us work collaboratively to create a business-friendly environment that encourages entrepreneurship and fosters economic development.”

On free trade zones, Oye stated, “While congratulating the board and management of Dala Economic Zone, I would like to appeal to Mr. President to consider advice from the genuine private sector and organized private sector in Nigeria and to always hold stakeholder forums before implementing major economic policies.

“In this regard, we appeal to reconsider and withdraw the approval of the memorandum dated October 20, 2024, authored by the FIRS Chairman. This memorandum inadvertently overlooked the legal basis for the incentives on free trade zones granted by President Obasanjo in 2002, predicated on Section 23(s) of the 2007 CITA.

“We urgently call upon the Federal Government of Nigeria (FGN) to take the following actions: Expunge Sections 60, 198(2), and 198(3) from the bill; exclude free zone enterprises from the scope of Section 57 of the bill, and delete the current Second Schedule of the bill in its entirety, which was inserted into the tax bill 2024.”

Speaking on the theme of the event, “Non-Oil Export for Economic Prosperity,” the NACCIMA president said it resonates “deeply with our collective aspiration for sustainable economic growth, especially as we navigate an ever-evolving global landscape. The future of our economy undeniably lies in the diversification of our exports, and it is imperative that we rally together towards this goal.”

On actionable strategies to expand the country’s non-oil exports, Oye proposed that “The government must take deliberate and proactive steps to create market access for non-oil exports by implementing strategic policies and programs that connect local producers to global markets. Establishing trade offices in key export destinations can promote Nigerian products and facilitate business linkages.