The Nigerian Association of Chambers of Commerce, Industry, Mining and Agriculture (NACCIMA) lamented that the federal government is still turning to the private sector for debt service funds by raising taxes. NACCIMA said his stance was justified by the recent laws passed by the National Assembly on alcohol and beverage consumption tax and other planned taxes including telecommunications tax for Nigerians and businesses. from the country.
National Chairman of NACCIMA, Ide John Udeagbala revealed this to New Telegraph in a chat, saying Nigeria’s huge debt profile showed that revenues would go to debt service in line with the Fund’s projections. International Monetary Fund (IMF) on the Nigerian economy. Nigeria’s total external debt in March 2022 (Q1) was $40 billion, rising from $38.4 billion in December 2021, with domestic debt also rising from N23.7 trillion to N25 trillion.
Udeagbala said that currently there is no doubt that the national budget is heavily skewed towards recurrent expenditures which are largely not covered by estimated government revenues. With this, the National President of NACCIMA advised all levels of government to consider other sources of funding, such as leveraging public-private partnerships for tax credits spread over time rather than always introducing new taxes on the private sector as short wedges to increase government revenue generation in the country. He said: “Nigeria’s total external debt as of March 2022 stood at $40 billion compared to $38.4 billion in December 2021.
Domestic debt also rose from 23.7 trillion naira to 25 trillion naira during the same period. “It is now very evident that current levels of debt are unsustainable, as the International Monetary Fund (IMF) projects that by 2026, all of Nigeria’s revenue will go to servicing debt. “As we consider that the national budget is heavily skewed towards recurrent expenditures which are largely not covered by estimated government revenues, we advise all levels of government to consider other sources of funding, such as the mobilization of public-private partnerships for the distribution of tax credits overtime.” Udeagbala added, “The economy cannot function on the basis of increasing the number of taxes borne by the private sector, as we have witnessed by recent laws passed by the National Assembly, and we advocate policies that systematically and systematically increase the tax base in terms of the volume of production or the number of taxpayers.
“This advocacy has begun to bear fruit in collaborations such as the Joint Private Sector Tax Council’s engagement in the implementation of the Single Interstate Road Tax, an initiative that will broaden the government’s tax base without exerting undue pressure on taxpayers.
“We also advise that the executive and the legislature make concerted efforts to reduce the cost of governance to reduce the pressure to run government on the basis of debt.” The NACCIMA helmsman also explained that the private sector is ready to work with the government through public-private partnerships in the accelerated implementation of policies such as the National Skills Qualifications Framework (NSQF), Executive Order 005 on Promoting Nigerian Content in Contracts and Science. , engineering and technology, and the extension of TETFUND to establish vocational training institutes. According to him, such a partnership could involve the establishment of training institutes within factories and industrial workshops belonging to the private sector to provide theoretical and practical training to Nigerians, a project that NACCIMA is ready to undertake with the government. , given its geographical spread. He said: “NACCIMA remains committed to working with government at all levels, other private sector actors to reduce unemployment by providing training and employment opportunities.”