The Nigerian Association of Chambers of Commerce Industry, Mines and Agriculture (NACCIMA) has appealed to the Federal Government to extend palliatives to all productive industries to cushion the effects of the removal of fuel subsidy.
Its National President, Otunba Dele Oye, made the appeal at the 3rd Quarterly Council meeting of the association in Abuja.
The Federal Government had announced N5 billion palliative for each state of the federation, including the Federal Capital Territory to ameliorate the rise cost of living arising from the removal of the petrol subsidy.
Oye said that the removal of petrol subsidy was not only affecting consumers but also the productive industries.
According to him, the removal of the petrol subsidy and the floating of the Naira currency have in one way or the other affected industries.
“These affected both consumers and industries because every new policy has its own casualties.
“So, in the long term, it is good for the country, but in the short term, you have to consider people who are wrongly affected so that the prices do not cause unusual inflation.
“It is important that the government ensures that the palliatives also go to the industries,’’ Oye said.
He added that it would take time for businesses to adjust to the new policy of Naira floating.
“The short term is always a bit difficult for a lot of people, because it takes time to adjust for businesses to get to know the new policy and also to work with it.”
NACCIMA boss said that providing loans at a single digit rate could provide certain cushioning effects to industries affected in the short term.
“This is because it is from us we generate the money from the tax to sustain the economy.
“So, government must focus and find a way to make sure that the palliative goes to every sector,’’ he said.
In his remarks, Dr Al-Mujtaba Abubakar, President, Abuja Chamber of Commerce and Industry (ACCI) said that the business community also needed incentives to cushion the effects of the fuel subsidy removal and the depreciation of the Naira.
Abubakar, who was represented by the Director-General of ACCI, Victoria Akai, also emphasised the need for stable power supply and harmonisation of tax to enable businesses thrive.
According to him, the business community is in dire need of incentives that will cushion the effect of the fuel subsidy removal and the depreciation of the Naira.
He urged NACCIMA president to liaise with relevant government agencies to press home the association’s demands such as stable power supply and harmonisation of tax among others.
“I will like to commend the determination of the NACCIMA President to further deepen the relationship of NACCIMA and policymakers which I believe will go a long way to bring the much-needed relief to the business community,’’ Abubakar said.
