OSBC Osun State Broadcasting Corporation
Nigerians have called on the Federal Government to extend the tax reliefs and concessions given to large manufacturing companies to the smaller ones to save them from total Collapse.
This was the aggregate view of those who spoke with OSBC News against the backdrop of the tax incentives and duty waiver schemes of the Federal Government which covered only Big Manufacturing industries.
Some Stakeholders in Nigeria are however of the opinion that granting tax waivers should not be restricted to the Big Manufacturing industries alone.
Speaking in separate interviews with OSBC News, an Osogbo-based Businessman, Mr. Abdul Moroof Adebayo called for a downward review of the interest on loans given to Small and Medium scale industries for sustainability of the sector.
“In Nigeria, cash waiver for big industries is good and we urge the government to assist the small ones too, through soft loan and little interest. This will assist them to increase their scale of production and employ more workers which will in turn reduce unemployment rate in the country.”
Speaking In the same vain, another stakeholder, Prince Ayodele Oke asked the government to equally extend such tax incentives to the smaller companies so as to revamp those that have collapsed under the heavy load of debt.
“We are happy with the waiver given to big manufacturers as it will help reduce the cost of production. However, the government should consider and extend this gesture to small manufacturers to encourage them to produce more. This will be an incentive for small manufactures and can help them to grow.”
It would be recalled that the Manufacturers Association of Nigeria, MAN, had consistently raised alarm over the dwindling fortunes of the sector as more companies, most especially those whose products and raw materials are import driven, continue to fold up as a result of the Instability of the Naira, leading to high Exchange rate, infrastructure decay, Unstable Electricity supply among others.
The Group had pleaded with the federal government to Intervene in the Sector and safe it from total Collapse with its attendance effect of Labour to Many millions Nigerians who work in Private industries.
The Federal Government seemed to have heed the call by the manufacturers as Reports indicate that as of the end of 2021, 46 companies had benefitted from various tax incentives and duty waiver schemes while the requests of 186 companies were still pending.
These reports were contained in the tax expenditure statement (TES) reports in the Medium-Term Expenditure and Fiscal Strategy documents posted on the website of the Budget Office of the Federation.
