Employers hails FG’s reforms to boost business climate, cut costs
The Nigeria Employers’ Consultative Association has praised the federal government for implementing essential reforms aimed at improving the business landscape and reducing operational expenses in the country.Mr. Ifeanyi Okoye, NECA’s National President, expressed these views during his welcome address at the association’s 68th Annual General Meeting, which took place in Lagos on Wednesday.
Okoye pointed out the Nigerian Tax Act 2024, various regulatory reform initiatives, and the Renewed Hope – Buy Made in Nigeria campaign as significant actions taken by the federal government to bolster the business environment.
He highlighted that excessive taxation has historically posed a major challenge, negatively impacting the private sector's competitiveness by escalating operational costs, increasing product prices, harming sales, and diminishing profit margins.
Okoye stated, “Thus, we commend the federal government for the enactment of the Nigerian Tax Act 2024.
“We specifically recognize the Act’s business-friendly features, which include the gradual decrease of Company Income Tax (CIT) from 30 percent to 25 percent, the consolidation of over 50 minor taxes, tax relief for small businesses with annual earnings below N50 million, and the exemption of essential goods from Value Added Tax (VAT).”
He urged the government to ensure the comprehensive and effective application of the Act to realize significant reductions in the cost of doing business.
The NECA President also lauded the government for making strides to address the multiple regulatory burdens placed on businesses by various federal, state, and local agencies.
Okoye remarked, “These overlapping and often contradictory responsibilities among Ministries, Departments, and Agencies (MDAs) have resulted in excessive fees and have complicated the ease of doing business.
“This scenario detrimentally affects the competitiveness of locally manufactured products and services.
“As such, we appreciate the federal government’s ongoing initiatives to streamline regulatory frameworks via the Presidential Enabling Business Environment Council (PEBEC).
“We commend PEBEC’s leadership for implementing essential reforms and specifically for creating the PEBEC Regulators’ Forum (PRF), which serves as a platform for addressing operational and regulatory challenges.
“We hope this forum will prioritize the alignment of regulatory roles among government bodies to eliminate redundancies and inefficiencies.”
He observed that the low demand for locally produced goods has long hindered the expansion of Nigerian businesses.
He further noted that this issue has persisted even after previous attempts to tackle it through Executive Orders 003 and 005, issued during the late President Muhammadu Buhari’s administration.
“We, therefore, express our appreciation to President Bola Ahmed Tinubu for endorsing the ‘Renewed Hope Nigeria First’ policy.
“This directive requires all federal Ministries, Departments, and Agencies to prioritize Nigerian-made products, services, and expertise in public procurement,” he added.
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