The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has called upon the Federal Government to extend relief measures to all productive industries in order to mitigate the impacts of the removal of the fuel subsidy.
At the 3rd Quarterly Council meeting of the association in Abuja, NACCIMA’s National President, Otunba Dele Oye, made this plea on Thursday.
The Federal Government had previously announced a N5 billion relief package for each state within the federation, including the Federal Capital Territory, to alleviate the increased cost of living resulting from the discontinuation of the petrol subsidy.
Oye pointed out that the elimination of the petrol subsidy was affecting not only consumers but also productive industries. He noted that both the removal of the petrol subsidy and the fluctuation in the value of the Naira were impacting various industries.
“These changes have consequences for both consumers and industries, as any new policy inevitably has its own set of casualties,” stated Oye.
He went on to explain, “In the grand scheme, this is advantageous for the country, yet in the immediate term, it’s vital to consider those who are negatively affected, so that price hikes don’t lead to abnormal inflation. Therefore, it’s crucial that the government ensures the relief measures also reach the industries.”
Oye acknowledged that adapting to the new policy of the Naira’s fluctuation would take time for businesses.
“The initial phase is typically challenging for many individuals, as it requires time for businesses to adapt to and become accustomed to the new policy’s nuances.”
The head of NACCIMA suggested that providing loans at a single-digit interest rate could offer a form of cushioning to industries facing short-term challenges.
“This approach is logical because we generate the funds through taxation that sustain the economy. Hence, the government must concentrate on finding ways to ensure that the relief measures encompass every sector,” he emphasised.
In response, Dr. Al-Mujtaba Abubakar, President of the Abuja Chamber of Commerce and Industry (ACCI), expressed that the business community similarly required incentives to offset the repercussions of fuel subsidy removal and the depreciation of the Naira.
Represented by Victoria Akai, the Director-General of ACCI, Abubakar also highlighted the importance of consistent power supply and streamlined taxation for fostering business growth.
He underscored, “The business community is in urgent need of incentives that can alleviate the impact of fuel subsidy removal and the Naira’s depreciation.” Abubakar encouraged the NACCIMA president to collaborate with relevant government bodies to advocate for the association’s requests, including a stable power supply and simplified taxation procedures.
“I’d like to commend the NACCIMA President’s commitment to deepening the relationship between NACCIMA and policymakers, a step that I believe will significantly contribute to bringing much-needed relief to the business community,” Abubakar concluded.
