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From the suspension of the sweetened sugar beverages tax to that of the Expatriate Employment Levy, these are clear indications that the Federal Government of Nigeria have begun giving a listening ear to the demands of the organised private sector (OPS) in Nigeria.
This is especially true since President Bola Ahmed Tinubu came into power on May 29, 2023.
The private sector in
Nigeria comprises the MAN, NACCIMA, NECA, NASME and the NASSI. We also have the NESG, CPPE, LCCI, etc.
In President Tinubu's efforts to build a viable economy, some of his administration’s fiscal and monetary policies have been resisted by the business community, especially the Organised Private Sector.
It's no hyperbole to say that the billions or trillions of naira investments by the OPS member companies are the oil lubricating the wheels of the Nigerian economy.
That's why the private sector is fittingly called "the engine of growth."
Recall that in April 2023, barely a month after President Tinubu assumed office, the government slammed an N10 tax per litre on the manufacturers of all non-alcoholicarbonated, and sweetened beverages.
The policy was intended to shore up the government's revenues for its many infrastructure projects.
The excise duty was part of a new policy introduced in the Finance Bill signed into law by former President Muhammadu Buhari in December 2021 alongside the 2022 Appropriation Bill.
When the government, through the Ministry of Finance, and the Customs, threw the levy to affected companies in the Food and Beverages industry, the members of the OPS unitedly battled the policy.
They complained that the levy would cut production and jobs as well as factory closures.
MAN warned that the levy would be counter-productive and urged President Tinubu to devise other means of generating revenue rather than inadvertently stifling the productive sector which is already struggling.
Consequently, the implementation of the policy was suspended by Mr President.
A statement issued on the U-turn by MAN Director-General, Segun Ajayi-Kadir, described it as a relief to the manufacturers across the country.
Again, two weeks ago, the business community woke up to the shocking news that the government had announced a new Expatriate Employment Levy whose objective was to promote local employment opportunities and skills development for the citizens.
Companies currently pay $2000 per expatriate annually.
This is an equivalent of about N3 million at the current exchange rate. The new levy is $10,000 for staff and $15,000 for directors, which translates to N15 million and N22.5 million, respectively.
In the Nigerian oil and gas industry, there are thousands of expatriates working for the likes of ENI, Mobil, Total Energies, etc. Think also of the expatriates in the manufacturing sector, especially in Dangote Industries Limited- the cement; the oil Refinery- they have the Indians and the Chinese expatriates manning some technical positions.
Again, the private sector leaders swung into action.
Dr Muda Yusuf, the CEO of the Centre for Private Enterprise (CPPE), appealed to the government to review the policy and undertake broader consultation to fine-tune the policy to ensure that we do not hurt genuine investors in the country.
" Some of the companies affected are major investors that have invested billions of dollars and have been in Nigeria for decades. This administration, being an investment-friendly regime, should give companies more time.
The country needs more direct investors than portfolio investors at this time. But ironically, both foreign direct investors and domestic direct investors would be more negatively impacted than portfolio investors.
The economy needs more investors in the real economy - oil and gas, manufacturing, infrastructure, mining, ICT, Healthcare - all of which require varying skills and competencies," he said.
In the same vein, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, “ urged the government at all levels to remain sensitive to the concerns of the private sector to enhance the profitability and sustainability of businesses in Nigeria."
The NECA was not left out as Adewale-Smatt Oyerinde, NECA’s Director-General, discouraged the EEL policy shocks.
"We urge an inclusive engagement with members of the Organised Private Sector of Nigeria (OPSN) with the view of harvesting workable solutions and options for a win-win position for the economy and the private sector,” he said.
The apex body of the
manufacturers in the country also pressured the government to halt the implementation of the Expatriate Employment Levy (EEL).
Segun Ajayi-Kadir, the Director -General/Chief Executive Officer of MAN, noted that the Association made a representation to Mr. President and copied the Minister of Finance and Coordinating Minister of the Economy; the minister of Industry, Trade and Investment as well as the Minister of Interior, to discontinue the enforcement of the levy.
What was the outcome?
We were told that the government again announced the temporary suspension of the Expatriate Employment Levy on March 8, pending further consultation with stakeholders.
So far, in the words of the MAN Director-General, "There is no doubt that the anxiety that enveloped the business community following the introduction of the levy has abated.
“Also, the international business community, particularly those with whom we have signed trade agreements, would also be reassured of our commitment to the creation of a congenial business environment."
︎Written by Alli Ocheneyi 
