Abuja, Aug. 24, 2023: The Nigerian Association of Chambers of Commerce Industry, Mines and Agriculture (NACCIMA) has appealed to the Federal Government to extend palliative on petrol subsidy removal to all sectors of the economy.
The National President of NACCIMA, Otumba Dele Oye made the appeal at the 3rd quarterly council meeting of the association on Thursday in Abuja.
The Federal Government recently announced a five billion Naira palliative for each state of the federation, including the Federal Capital Territory to cushion the impact of the removal of the petrol subsidy.
Oye said that the removal of petrol subsidy was not only affecting consumers but also the productive industry.
According to him, the removal of the petrol subsidy and the floating of the Naira currency have in one way or the other affected industries.
“They are all affected either positively or negatively because every new policy has its own casualties but also people benefiting from the operations.
“This is because in a liberalised system people do not have the opportunity of getting the official dollar rate and naturally even to play in a level playing field which increases competition.
“So, in the long term is good for the country, but in the short term you have to find a way to take into consideration people who are wrongly affected so that the prices do not cause unusual inflation.
“It is important that the government ensures that the palliative also goes to the industries,’’ Oye said.
He further said that it would take time for businesses to adjust to the new policy of Naira floating.
“The short term is always a bit difficult for a lot of people, because it takes time to adjust for businesses to get to know the new policy and also to work with it.
“It seems one of the reasons why we are suffering is that we were supposed to do certain investments by buying fuel at the proper rate.
“We were enjoying the free rate and what has happened is that our demand has gone far beyond our needs.
“So, what I am saying is this burden has now been removed and that is why I can see some level of excess cash coming into the coffers of government.
“So, this can go into development but there are people who are affected in the short term because it is bound to increase the cost of production,’’ Oye said.
He said that providing loans at a single digit rate could provide certain cushioning effects to industries affected in the short term.
“This is because it is from us we generate the money from the tax to sustain the economy.
“So, government must focus and find a way to make sure that the palliative goes to every sector,’’ he said.
On his part, Dr Al-Mujtaba Abubakar, President Abuja Chamber of Commerce and Industry (ACCI) said that the business community needed incentives to cushion the effect of the fuel subsidy removal and the depreciation of the Naira.
Abubakar who was represented by the Director-General of ACCI, Victoria Akai, also emphasised the need for stable power supply and harmonisation of tax to enable businesses thrive.
According to him, the business community is in dire need of incentives that will cushion the effect of the fuel subsidy removal and the depreciation of the Naira.
“I urge you to use your good office to liaise with relevant government agencies to press home our demands including stable power supply and harmonisation of tax amongst other need.
“I will like to commend the determination of the NACCIMA President to further deepen the relationship of NACCIMA and policymakers which I believe will go a long way to bring the much-needed relief to the business community,’’ Abubakar said.
