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Fuel subsidy removal: NACCIMA raises alarm over impact on businesses
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Fuel subsidy removal: NACCIMA raises alarm over impact on businesses

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed deep concerns over the impact that the planned removal of fuel subsidy would have on businesses,

  • PublishedApril 28, 2023

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed deep concerns over the impact that the planned removal of fuel subsidy would have on businesses, even as it noted that the federal government has not made any tangible provisions to cushion the potential effects of the removal.

President of NACCIMA, Ide John Udeagbala, stated the concerns of the business community at a press briefing on socio-economic issues, in Lagos, yesterday.

His words: NACCIMA and indeed the organised private sector (OPS) are not against subsidy removal from fuel; however, we are concerned about the impacts of the subsidy removal on our businesses which are already burdened with so much economic pressures and difficulties, leading to the shutdown of many SMEs and more unemployment in the country.

“The greater challenge is that the government has not shown any tangible productive plan to cushion the impacts of the subsidy removal other than to borrow additional $800 million (statistically translating to N8000 per ordinary Nigerian) which, according to them, is meant to cushion the impact of the fuel subsidy removal.”

Udeagbala rather called for the urgent fixing of the nation’s four refineries to stem the importation of petroleum products into the country.

“Aside from production of basic fuel products (PMS, Diesel, etc), there are other heavier distillates and by-products of these refineries which are also critical inputs for industries such as LPFO, SRG, Carbon Black, etc. This, we believe, will help to generate further employment opportunities for our citizens particularly the teeming youths.

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“It will also address the impact of fuel subsidy removal without adding additional debt burden on the nation. Besides, our ability to provide some basic raw materials internally will help our industries to compete better to benefit from the African Continental Free Trade Area (AfCFTA),” he stated.

NACCIMA also advised the incoming government to consider reduction in the size of its government functionaries in order to reduce cost and save funds for infrastructural development.

“There is also the need to make elective positions and principal appointments into various government agencies and offices and ministerial offices less financially attractive and redirect attention into production economy in order to revive the ailing Nigerian economy,” Udeagbala added.

 

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