* Urges Govt To Lift Forex Ban On 41 Items
* Stop Use Of Force To Collect Taxes
As many companies continue to close shop as a result of the economic situation in the country, the private sector has mapped out ways to reflate the ailing economy.
It has also raised concerns over worsening forex crisis in the country which it attributed to current difficulties in reflating the economy.
It also criticised what it called lopsided monetary policies of the Central Bank of Nigeria (CBN), especially flouting of the directive to banks to channel a minimum of 60% of available forex to the manufacturing sector.
These grievances formed part of discussions at the Presidential Business Forum on Monday in Abuja.
The forum is a platform coordinated by the presidency to engage and interact with the private sector operators in the country.
In the meeting presided over by Acting President Yemi Osinbajo, he opined that Nigeria’s economic growth would rely solely on the ingenuity of the private sector, hence concerted efforts to encourage them.
Osinbajo, who paid keen attention to the challenges bedeviling investors in the country, said the Federal Government has mapped out a plan of economic recovery and growth for 2017 which the private sector has been effectively keyed into.
He said, “I am extremely pleased to welcome you all to this second quarterly business forum. The last one was held in September 2016.
“This is the first this year and we will ensure it keeps running.
“The main plan of our economic plan is the sustenance of the robust private sector partnership. Indeed, it is our strong believe that sustainable economic growth is only possible if it is private sector led and a great of attention has been paid as you will possibly find in sustaining private sector leadership especially in the plan of economic recovery and growth plan in 2017 which is to be launched next month.
“The pivot of that plan is the private sector led recovery growth and plan.
“So, this forum is an important one for engendering the continuous engagement that this partnership will entail.”
In a presentation on behalf of the organised private sector, comprising the Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); Nigeria Employers’ Consultative Association (NECA); Nigerian Association of Small and Medium Scale Enterprises (NASME) and Nigerian Association of Small Scale Industries (NASSI), Frank Udemba Jacobs, president, MAN, enumerated the challenges the sector was facing which had indirectly hampered its effort at reflating the economy.
According to Jacobs, government would be seen to be serious to diversify the economy if it ensures that the 60% concessionary forex allocation to the manufacturing sector for raw materials and machinery importation is strictly implemented.
The private investor also noted that the list of 41 items banned by the central bank from accessing forex at the interbank forex market should be reviewed, with the aim of removing raw material components that cannot be sourced locally.
Another participant at the business forum and president of the Lagos Chamber of Commerce and Industry, Nike Akande, said including members of the organised private sector in the Ease of Doing Business Committee set up by the Federal Government would not be out of place.
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Akande, a former Minister of Industry, who spoke with State House correspondents at the forum, argued that private sector operators are more conversant with the problems and will be ready to quickly bring such to the notice of the government when included in the committee.
Akande said, “The Ease of Doing Business Committee that the government has set up is very important. Whenever I have opportunity to travel out of the country and make speeches, I always try to attract investment to the country.
“We, the private sector operators, want to be part of this committee because we know where the shoe pinches.
“By being part of the committee, the challenges being faced by the private sector can be brought to the notice of the Federal Government quickly.
“The good news, however, is that the Minister of Industry, Trade and Investment mentioned that they are already thinking about it.
“If we did not have this dialogue, we won’t know what they are thinking. I thank the government for this dialogue.”
The former minister said the points raised by the OPS were critical to the nation’s economy.
She urged the government to sustain the forum which she said afforded both parties to listen to each other.
The MAN president listed long term funding; EU/ECOWAS Economic Partnership Agreement; patronage of Made-in-Nigeria products and enforcement of the Procurement Act and collapse of basic infrastructural facilities as some factors militating against industrialisation of the country.
Others were challenges with policy environment; low investment in agriculture and agro-allied businesses; prohibitive gas pricing for industrial users and wrong classification as commercial users; multiple levies by government agencies on same sales promotion; and invasion of premises of members for the purpose of collecting taxes.?
“Major issues of concern to us, Your Excellency, is that in order to achieve the objectives of government towards reviving the economy; revitalising the industrial sector; growing MSMEs and creating employment for its citizenry, we believe that the under listed challenges should be addressed urgently:
“Access to foreign exchange by the real sector: access to forex has been a major challenge to businesses in the last two years. We are aware, and commend the government on the various steps taken to resolve this issue including the standing directive by the CBN to banks to channel minimum 60% of available forex to manufacturers.
“The challenge this policy is currently facing is that there is inadequate monitoring mechanism to ensure that the policy achieves its desired result of allocating the stipulated percentage of forex to bona fide manufacturers.
“The CBN list of 41 items is made up of 440 tariff lines. Thirty-one out of the CBN list of items not valid for forex contain 393 tariff lines which are finished products. Those finished products may be retained on the list of items excluded from the official foreign exchange market.
“The remaining 10 items of 47 tariff lines are essential industrial raw materials that are either not readily available locally or there is a yawning gap between local production and national demand. Our position was made known to the Presidential Reconciliation Committee on this matter through the Honourable Minister of Finance in 2016.
“Government through the CBN should ensure that the 60% concessionary forex allocation to the manufacturing sector for raw materials and machinery importation is strictly implemented,” Jacobs stated.
