The President, Association of Fast Food Confectioners of Nigeria (AFFCON), Mrs Bose Ayeni, has urged President Muhammadu Buhari to pay attention to the economy by strengthening local production.
He said with the focus on anti-corruption bringing increased nationalistic spirit of Nigerians, if 10 per cent of what is frittered away from Nigeria is ploughed back, the country’s economy would receive a boost.
“Corruption must be tackled headlong so that the commonwealth will stop being in private hands. This will also positively affect our international rating on the ease of doing business in Nigeria. However, the government should pay more attention to strengthening the economy,” she noted.
Ayeni said further that while the government is fighting corruption and plugging loopholes, efforts should be made to strengthen and boost local production in the areas of manufacturing, agriculture and services.
The need, she said, to revive agriculture as an engine for economic growth cannot be over-emphasised considering that it has a direct impact on manufacturing through agricultural processing and job creation.
She also noted that access to, and cost of funds, must also improve while the deplorable state of the nation’s infrastructure must be addressed.
The industry is a key contributor to the economy, with an estimated annual revenue of N200 billion.
Given that the food industry also employs over 500,000 people at the processing and retailing levels, a lot of whom are youths, the AFFCON boss said her group is, therefore, contributing much to the reduction of unemployment, one of the major challenges facing the new government.
In addition, she said the fast food industry pays over N1 billion to the various tiers of government in taxes and levies. “It has a massive growth potential and is dominated by some 100 small- to medium-sized indigenous brands with over 800 outlets/restaurants spread across Nigeria. Small and medium scale enterprises are the bedrock of economic growth. This has been demonstrated in developed and developing economies in the West and in Asia.
“As urbanisation spreads across the nation and the globe, chances of people eating outside their homes will increase. Quick service restaurants have been filling the gap.The food that will be served at the quick-service restaurants will come from farms. Therefore, the quick-service restaurants operators and the producers of food are like Siamese twins that must work hand in hand to meet the increasing food demands of this mobile and increasing population. That is what AFFCON exists to do,” she said.
She, however, lamented that the insurgency in the Northeast has greatly affected supply of vegetables, grains and proteins. “We commend the government’s efforts in combating the Boko Haram menace, which has depleted the volume of trade from the North, particularly, vegetables, grains and proteins, as farmers have abandoned their farms as a result of persistent attacks. Member businesses have been negatively affected by the insecurity associated with these insurgencies. We urge the government to intensify its efforts to see that the Boko Haram is entirely wiped out of Nigeria,” she said.
She also lamented the challenge of multiple taxation in the country, arguing that it is taking a toll on earnings. “The challenge of multiplicity of taxation and levies still exists. This has been compounded by the introduction of consumption tax by some states in the federation. While recognising our role as agents of government in the collection of this tax, the impact on the consumer cannot be ignored. This has a net effect on disposable income. We use this opportunity to restate our case for the reconsideration of consumption tax charges in states where this has been effected or being considered for implementation,” she said.
She, however, expressed confidence in the economy with the renewed commitment to national growth by the new administration. She said: “In spite of these challenges, we are hopeful that the future is bright. The Nigerian economy has a huge potential, and the fast food industry is ever ready to tap into this potential to provide the consumer with an unforgettable eating experience away from home. We will seek more areas of collaboration within the Hospitality Industry to be able to fully tap into the largely untapped tourism potential of Nigeria.”
