Business
Stakeholders Knock FG Over Proposed Excise Tax
Stakeholders and business executives in small scale and manufacturing sector have faulted the Federal Government over the proposed 20 per cent ad-valorem excise tax on non-alcoholic beverages which covers the widely consumed carbonated soft drinks area.
They stated that such a move would spell doom for the sector as the effect of the prevailing N10 per litre tax regime was already disabling the industry with its biting effects on businesses.
Speaking while interacting with airport correspondents on Monday on the matter, a Port Harcourt based business executive, Mrs Matilda Chigozie, said such tax, when implemented, will add to the already untold hardship both to the consumers and dealers.
According to her, the impact of the prevailing N10 per litre excise tax, so far monitored, has negatively impacted on their business, noting that the effect of it, between June and August in 2022 showed 8 per cent revenue decline as a direct result of excise tax implementation.
She said if nothing is done fast, and given the rate of inflation in the country, it is projected that the decline will likely hit 25 per cent by December 2022.
On his part, Francis Uzoma, who is into soft drinks manufacturing, and a member of the Manufacturers Association of Nigeria (MAN), said with the proposed 20 per cent ad-valorem tax introduction, the collapse of the soft drink market was imminent.
He said this would be catastrophic as thousands of jobs could be affected and the ultimate aim of the government in collecting revenue completely defeated.
“Most certainly, the additional 20 per cent will not only kill the sector, but also result in the loss of revenue by the Federal Government, and a consequential phenomenal loss of jobs by various layers of the Nigerian workforce”, Uzoma said.
He, however, urged the Federal Government to reconsider its stand on the matter, in order not to add more hardship to the business community, in the quest to raise revenue
By: Corlins Walter
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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