Tag: NACCIMA

The President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has urged the Federal Government to support private sector expansion and create a conducive investment environment to tackle the nation’s economic woes.

Oye, in an interview, highlighted the detrimental effects of current fiscal policies on the private sector, emphasizing that high taxation and government expenditure are stifling business growth.

“Government must work with the private sector. We cannot tax ourselves out of this problem. To increase competitiveness, taxes should be reduced, and policies should align with those of neighbouring countries to make Nigeria more attractive for investment,” he stated.

The NACCIMA boss, in his New Year address, detailed the challenges faced by the Nigerian private sector in 2024, describing the year’s economic performance as unsatisfactory primarily due to the burdens imposed by economic reforms.

He noted that while the public sector expanded, the private sector bore the brunt of high inflation, increased borrowing costs, and currency devaluation.

“All data, metrics, and consequent statistics confirm that the Nigerian private sector has fully borne the negative burdens of the current economic reforms,” he remarked, criticizing the imbalance where benefits seemed to flow disproportionately to the public sector through high capital transfers and revenues.

Key among NACCIMA’s recommendations for 2025, as outlined by Oye, include addressing naira instability, as the fluctuating value of the naira has significantly deterred investments.

Oye stressed the need for stability to foster a more predictable business environment.

There are also tax and fiscal reforms, such as the proposed reduction in corporate taxes to 19 per cent and Value Added Tax (VAT) to 7.5 per cent, with Oye arguing that lower taxes would spur economic growth and ultimately increase government revenue.

He also called for a reduction in government operational costs and a curb on deficit financing, particularly through local borrowing, which he described as unsustainable.

Read Also: NACCIMA, BoI seal deal on N75b MSMEs fund disbursement

The NACCIMA chief further highlighted the need for collaboration and policy realignment. He advocated for enhanced collaboration between the government and private sector, suggesting that the government should act more as a facilitator rather than a competitor in business.

He criticized the Central Bank of Nigeria’s (CBN) approach, suggesting a recalibration of monetary policies to mitigate the adverse effects on businesses.

Oye, however, expressed optimism about recent engagements with the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, but called for a broader, more inclusive partnership across various ministries and agencies to effectively implement reforms.

He particularly pin-pointed the need for the CBN to reconsider its high-interest rate policies, which he argued, punish the private sector without addressing the root causes of economic instability.

“Paying off local debts and limiting public borrowing will make credit accessible and help the private sector grow,” Oye asserted, aligning his comments with President Bola Tinubu’s eight-point agenda which promises single-digit loans to businesses.

Oye stressed the mutual interest in government success, appealing for innovative strategies to restore Nigeria’s status as Africa’s leading economy.

“We must find a way to make Nigeria work. It is in everyone’s interest for the government to succeed because if it fails, we all lose. My members are ready to partner with the government to turn the economy around,” he stated.

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and the Bank of Industry (BoI) have signed a Memorandum of Understanding (MoU) for the disbursement of the N75 billion intervention fund aimed at supporting Micro, Small, and Medium Enterprises (MSMEs) across the country.

The deal was sealed on Thursday, between the NACCIMA President, Dele Kelvin Oye, and the Managing Director and Chief Executive Officer of the Bank of Industry (BoI), Dr. Olasupo Olusi, at BoI’s office, in Lagos.

Olusi, who expressed optimism about the partnership, noted that “Today’s MoU is a reinforcement of our commitment to create a more vibrant and accessible financing environment for Nigerian businesses. With the support of NACCIMA, we believe we can expand our reach and magnify our impact.”

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On his part, Oye described BoI as an engine of growth, and a catalyst for transformation in Nigeria’s industrial landscape, noting that the intervention will help address the funding challenges of MSMEs, while galvanizing growth across a diverse array of sectors, from agro and food processing to creative industries, healthcare, and renewable energy, among others.

According to him, “It is indeed a great honour to stand before you today as the President of NACCIMA at this significant occasion of our MoU signing with the BoI. Today, we do not simply convene; we gather to forge bonds, to kindle a partnership, and to reaffirm our collective commitment to the growth and sustenance of our nation’s economy.

 “As the apex chamber of commerce in Nigeria and the largest business organisation in West Africa, NACCIMA has always stood on the frontline of advocating for policies and practices that elevate the business environment and invigorate the entrepreneurial spirit across our land.

 “Our broadest objective is clear to champion the cause of commerce and industry so that Nigerian businesses can thrive in a competitive global landscape. We are driven by the belief that a prosperous business community is the bedrock of a prosperous nation.”

Oye further noted, “Today, as we sign this MoU, we acknowledge the critical role that the BoI has played as a beacon of hope, an engine of growth, and a catalyst for transformation in Nigeria’s industrial landscape.

 “The BoI’s commitment to providing financial and advisory support to our industries resonates deeply with our vision at NACCIMA. By extending long-term financing and expert advisory services, the BOI has empowered large, medium, and small enterprises alike, galvanizing growth across a diverse array of sectors – from agro and food processing to creative industries, healthcare, and renewable energy.

 “However, we find ourselves at a crossroads, a moment where we must seize the opportunity to enhance the BoI’s capacity to support our economy further. If we are to realize the full potential of this great nation, we must advocate for increased funding and robust resources for the BoI. This will enable the bank to extend its reach, amplify its impact, and support more businesses in realizing their visions.

 “A thriving industrial sector is not just a story of numbers and balance sheets; it is about people. It is about the farmer who dreams of processing and exporting the finest organic produce, the innovator with a groundbreaking idea, the entrepreneur poised to revolutionize our creative industries, and yes, the small business owner who believes that her hard-earned dreams can shape the future. These are the voices we must lift, and these are the dreams we must support.

 “With a history that reflects over six decades of dedication to Nigeria’s development financing, the BoI has continuously evolved to meet our country’s changing needs. However, this evolution relies significantly on our collective efforts as stakeholders.

 “NACCIMA stands ready to strengthen its partnership with the BoI, to be its advocate, and to rally our members and the broader business community in providing the necessary support for our shared goal: a resilient, dynamic, and inclusive economy.”

Oye noted that “Together, we can cultivate an ecosystem where industries thrive, where innovation flourishes, and where we, as a nation, take our rightful place as a key player on the global stage. Let us work hand in hand to enhance the BoI’s capacity, ensuring it continues to fund the dreams of our entrepreneurs and the aspirations of our economy for generations to come.”

 “Let us recognize that the journey ahead is one of collaboration, commitment, and courage. The MoU we sign today is not merely a document; it is a declaration of our intent to build a future where businesses can thrive, jobs can be created, and our economy can prosper. Let us embrace this opportunity with unwavering resolve and a shared vision for a better tomorrow.”

The President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, has charged governments and other stakeholders on the need to support Micro, Small, and Medium Enterprises (MSMEs).

He stressed the need to guarantee a conducive environment to ensure that businesses and MSMEs thrive and are able to compete on a global scale and contribute meaningfully to the national economy. 

Oye, who spoke at the fourth Ekiti Trade Fair, said there was need to empower and support more businesses in the country and ensure that they have the tools necessary for innovation and growth in ever-changing markets.

The event, which attracted the crème-de-la-crème in the business world, captains of industries, government representatives, and other stakeholders, held with the theme, Empowering MSMEs: Innovate, Grow, Transform-Advancing Agribusiness and Tourism for Local to Global Prosperity.

According to Oye, “The essence of a Chamber of Commerce in society transcends mere economic activity; we are the driving force for enhancing sustainable growth and enabling our businesses-especially the Micro, Small, and Medium Enterprises (MSMEs)-to thrive.

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 “Through initiatives like this trade fair, we create a robust platform where businesses can connect, innovate, and grow. It is our honour and responsibility to bring industry to market, ensuring that both local artisans and large enterprises can find common ground in collaboration, resilience, and inspiration.”

The NACCIMA boss continued: “Today, as we gather here, I wish to extend my heartfelt gratitude to several key individuals and organisations who have played pivotal roles in the realisation of this event.

 “First and foremost, I would like to thank the President of the Ekiti Chamber of Commerce and the Executive Committee for their relentless dedication and tireless efforts in organizing this fair. Your leadership has once again proven invaluable in setting a benchmark for excellence.

 “I would also like to express my deepest appreciation to the Commissioner for Commerce, the First Lady of Ekiti State, and His Excellency, the Governor, for their unwavering financial and administrative support.

 “Your commitment to supporting MSMEs and in providing an environment conducive to growth speaks volumes about your vision for Ekiti State- a State brimming with potential and opportunity.

 “A special recognition goes to Mrs. Oni, the Chair of the Planning Committee. Your meticulous planning, commitment, and creativity have been instrumental in bringing this vision to life. It is evident that without your diligent efforts, today’s event would not have achieved such a level of success.”

The NACCIMA boss added that, “As NACCIMA, we represent over 100 Chambers of Commerce across Nigeria, forming a formidable network of over two million businesses. Our mission is to promote the interests of commerce, industry, and agriculture, ensuring that our members have the tools necessary for innovation and growth in ever-changing markets.

 “We seek to create an environment where Nigerian businesses can compete on a global scale and contribute meaningfully to our national economy. 

 “As we embrace the theme “Innovate, Grow, Transform,” let us all take a moment to reflect on the immense opportunities that lie ahead. By nurturing innovation and collaboration, we can transform the landscape of agribusiness and tourism, paving the way for prosperity in Ekiti State that resonates globally.”

 “Together, let us forge ahead with renewed vigour, harnessing our collective strengths to empower our MSMEs, and champion our local industries, that will take Ekiti State to its pride of place in the global economy.”

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

Speaking at the 45th Trade Fair hosted by the Kano Chamber of Commerce, Industry, Mines, and Agriculture (KACCIMA), NACCIMA President, Dele 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.

He, 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, “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 the OPS 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 Federal Inland Revenue Service (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.

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 “We urgently call upon the Federal Government 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. Through strategic partnerships with international trade organisations, we can secure preferential trade agreements that grant Nigerian products a competitive edge.

 “Moreover, government-led initiatives like trade missions and export-focused roadshows can showcase the quality and diversity of Nigerian goods while building networks with foreign buyers.

 “By leveraging diplomatic channels, we can address barriers such as restrictive trade policies, unfair tariffs, and logistical challenges that hinder market penetration.

 “The government can offer incentives for banks to lend more to export-oriented enterprises, fostering growth and enabling businesses to compete effectively in international markets. These financial supports can assist local businesses in scaling their operations to meet global demands.”

Oye also stated that to enhance the competitiveness of Nigerian exports, it is crucial that exporters obtain international certifications, such as HACCP, ISO, and FDA, and government provides training and support businesses in acquiring these certifications.

 “Furthermore, enhancing quality control measures at ports of exit will ensure that Nigerian products not only meet global standards but also ensure consumer safety and satisfaction,” he added.

The NACCIMA boss also said both government and private sector partnerships should focus on investing in digital infrastructure, research, and innovation. This, he said, will enable Nigerian businesses to fully participate in the Fourth Industrial Revolution and gain a competitive edge in global markets.

“The African Continental Free Trade Area (AfCFTA) presents a significant opportunity for African countries to access regional markets and promote industrialisation.

 “By collaborating closely with other African nations, Nigeria can capitalize on its non-oil sector strengths to create diversified and resilient value chains, boosting economic growth and regional integration,” Oye said.

He continued: “The Kano Chamber has made significant contributions to the development of non-oil exports, serving as a vital bridge between the agricultural sector and international markets. Through initiatives aimed at promoting value addition, the Chamber encourages local farmers and businesses to enhance their product offerings before they reach the market. This is critical for increasing our earnings from non-oil exports.

 “Kano State’s rich agricultural resources, robust processing capacity, and entrepreneurial spirit uniquely position it to lead the way in non-oil export growth. However, as we enhance our export performance, we must heed the lessons of success from partners across the continent.

 “Countries like Kenya and Ghana demonstrate that increasing local processing capabilities significantly elevates non-oil export revenues.

 “In this regard, I issue a call to action for all stakeholders here today: let us prioritize establishing processing facilities that enable us to add value to our agricultural products. By moving beyond merely exporting raw or semi-processed materials, we can maximize our revenues and create jobs for our people.

 “Investing in value-added processes will enhance our global competitiveness and contribute to long-term economic stability.”

Oye insisted that the success of the nation’s non-oil export initiatives hinges on her collective commitment to innovation, quality, and integrity, and that the Kano Chamber of Commerce, with its legacy and vision for the future, is well-positioned to lead the charge in this vital sector.

 “As we celebrate 45 years of trade and commerce, let us renew our dedication to creating an economy that thrives on inclusivity, transparency, and sustainable practices.

 “Together, we can reshape Nigeria’s economic narrative, ensuring that the fruits of our labor contribute to the prosperity of our communities and our nation,” the NACCIMA president concluded.

• Insists on local currency import duties collection

The President, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has insisted that the duties collected by the Nigeria Customs Service (NCS) should be charged in Naira rather than in a foreign currency.

Reacting to the directive of the Central Bank of Nigeria (CBN) on the use of foreign currency collateral for Naira loans, Oye said NACCIMA has still not had a clear understanding of the Fiscal Policy objectives being put in place by the CBN. He noted that while the monetary policy directives have resulted in calming the markets, the activities continue to be guided without a complimentary fiscal policy direction.

“We are still unclear about the Fiscal Policy objectives being pursued through these monetary policy directives. This directive is one of many in the public domain and our position is to treat them equally,” he said.

He further explained that in the association’s letter dated March 28, this year, with ref No NCC/NP/ 22/23/1267 to the Minister of Finance and Coordinating Minister of the Economy, NACCIMA called his to the vacuum created by an anticipated report of the Presidential Committee on Fiscal and Tax reform which is yet to be presented to the organised private sector in April.

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“As explained, most business and investment decisions are anchored upon fiscal and monetary policy expectations,’’ he said.

For this reason, we strongly reaffirm and advocate for the timely release of the 2024 Fiscal Policy.

“We decline to respond or be distracted by piecemeal bulletins or press releases on monetary policy when we don’t have regulatory authority guidance on the critical ingredients like inflation rate target, government debt policy, currency printing (quantitative easing) target or interest rate policy,” Oye said.

The NACCIMA boss, however, noted that the association is determined to draw attention to the issue for many reasons including that the “recent monetary policy directives have resulted in calming the markets, however, activities continue to be guided without a complimentary fiscal policy direction.

“For example 24.75 per cent interest rates will not increase local investment in agriculture and manufacturing. We agree it mopped up liquidity, but what is the objective? We still appeal and insist that all bonafide government transactions must be in the sovereign currency of Nigeria.

• Policy ‘ll discourage local production

The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has criticised the Central Bank of Nigeria (CBN) for lifting the ban on foreign exchange restrictions on the importation of milk and dairy products.

He said reversing the measure could result in the decline of local production of the items.

Oye in a statement yesterday, expressed concerns over the potential impact of the policy change, especially against the backdrop of the Naira’s current depreciation and the inconsistencies observed in the Nigeria Customs Service duty payment.

“We acknowledge the CBN’s efforts to refine trade policies in alignment with the evolving economic landscape,” nonetheless, “the decision to lift restrictions on dairy importation by all entities, barring selected companies, suggests a strategic move towards liberalizing the sector, which is commendable from a free-market perspective.

“However, as a professional body deeply invested in the growth and stability of Nigeria’s economy, we must express our concerns regarding the potential ramifications of this policy change, especially against the backdrop of the Naira’s current depreciation and the inconsistencies observed in Customs duty payment.”

Oye said the depreciation of the Naira has already placed a significant burden on importers, with the increased cost of foreign exchange reflecting on the final prices of goods and services, adding that the recent policy shift, while potentially increasing competition and broadening market access, “could also exacerbate this burden, leading to higher retail prices for milk and dairy products, ultimately affecting the end consumers.

“In addition, he said, inconsistent Customs duty payments have been a significant challenge for businesses in Nigeria,” saying this inconsistency “not only hampers the ease of doing business, but also creates an unpredictable trading environment.”

Read Also: Nigeria’s food now cheapest in W/Africa, says NACCIMA

Oye insisted that a policy change of this magnitude requires a concomitant strengthening of Customs regulations to ensure that all stakeholders are on a level playing field, saying  that NACCIMA recommend a phased approach that would allow domestic producers to adjust to the new competitive landscape while preserving the value of the Naira.

“This approach should be coupled with a robust support system for local dairy farmers to boost domestic production, thereby reducing over-reliance on imports in the long term.

“Additionally, harmonizing customs duty payments to eliminate disparities and foster transparency will be critical to ensuring the success of this policy.

“While we recognize the merits of liberalising the dairy importation process, we strongly advocate for measures that safeguard the stability of our national currency and promote fair trade practices,” adding, “we are keen to engage with the CBN and other stakeholders in crafting a sustainable path forward that benefits the Nigerian economy and its populace.”

President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Kelvin Oye, has said recent Naira devaluation was fuelling food and grain export to West African countries as Nigeria’s food is now the cheapest in the sub-region region due to the low value of Naira.

Oye said this in response to comments by the Nigeria Governors Forum (NGF), stressing that while the immediate effect of the devaluation on exports may be positive, the broader implications of a persistent devaluation are multifaceted.

The NACCIMA President in a statement said the observations made by the NGF highlight a nuanced aspect of currency devaluation, especially its effect on trade competitiveness.

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He said: “The observations made by the Nigeria Governors Forum highlight a nuanced aspect of currency devaluation – its effect on trade competitiveness. The devaluation of the Naira, while presenting broad economic challenges, does appear to have inadvertently enhanced the competitiveness of Nigerian food and grain exports within the West African region. This phenomenon is rooted in the economics of exchange rates. A weaker Naira means that Nigerian goods become less expensive for buyers using stronger currencies. Consequently, Nigerian food and grains are now more competitively priced when compared to similar products from countries with stronger currencies. This price advantage can lead to an increase in demand for Nigerian exports within the region.”

Addressing inflationary pressures, the statement said: “On inflationary pressure, the cost of imported goods, including agricultural input such as machinery, fertilisers, and pesticides, will increase, potentially driving up domestic production costs over time. On consumer impact, the increased export of food and grains could lead to a reduction in domestic supply, thereby escalating food prices locally and aggravating food insecurity in Nigeria.”