The Onitsha Chamber of
Commerce, Industry, Mines and Agriculture (ONICCIMA), has decried the increasing rate of down-sizing and closure of Small and Medium Enterprises (SMEs) in the country.
The ONICCIMA Director-General, Mr Dominic Ajibo, told newsmen in Enugu that the unfortunate economic downturn of the SMEs should not be allowed to continue.
“The only way to check this negative trend is to cut taxes and check incidences of multiple taxation.
“For now, most entrepreneurs are already choked up with the economic strangulation brought about by the current recession.
“Some of them have closed shop while many others are contemplating temporary suspension of production and down-sizing of staff,” Ajibo said.
He said that the downsizing of personnel by the SMEs in the South-East, had worsened the unemployment situation in the zone.
The Director General urged the Federal Government to complement the Anambra Government’s tax reduction initiative.
“The Anambra Government went ahead to abolish all forms of taxes and levies paid by petty traders and hawkers in the state.
“This move has allowed the very low income earners to have some relief under the strangulating grip of the prevailing recession,” he said.
Ajibo stressed the need for a formidable economic team to pilot the country out of the recession, adding that the problem was not peculiar to Nigeria, as it happened in most African countries.
He said that these African countries were land-locked and did not have crude oil to export like Nigeria but they had a progressive Gross Domestic Product (GDP) in the last two quarters.
“Our country’s recession is getting worse, notwithstanding our seaports, natural resources and rich human endowments,” he said.