MAN, NECA, NACCIMA Reject FG’s Excise Tax Increase 

The Organised Private Sector of Nigeria (OPSN) comprising the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers’ Consultative Association (NECA), the Nigerian Association of Small Scale Industries (NASSI), and the Nigerian Association of Small and Medium Enterprises (NASME) has rejected the recently announced increase in excise tax.
The increase, which was contained in a circular dated April 20, 2023, was reportedly signed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.
A statement by OPSN called for an immediate reversal of the hike. It said the increase was unwarranted, ill-timed and inimical to the Nigerian economy and the manufacturing sector in particular.
The statement, signed by the Directors-General of MAN, NACCIMA, NECA, NASSI, and NASME: Segun Ajayi-Kadir, Olusola Obadimu, Adewale Oyerinde,  Ifeanyi Oputa, and Eke Ubiji, respectively, said the manufacturing sector is presently grappling with unprecedented challenges.
Such challenges, it stated, include the sustained scarcity of naira, limited access to foreign exchange, a struggling economy and persistent inflation, alongside perennial problems of multiple taxation and epileptic power supply.
OPSN said these challenges had resulted in a record crash in sales for most businesses running into billions of Naira, with the result that manufacturers are struggling to remain in business, amidst looming job cuts, mothballing of factories and total shutdown of businesses.
It stated in part: “Therefore, increasing excise rates at this time is extremely ill-advised and may sound the death knell for affected businesses and their contribution to the national economy, even as the broader manufacturing sector continues to deteriorate.
“In light of the above, the OPSN respectfully requests the Federal Government to urgently reverse the increase in excise rates to protect the affected industries and the dependent businesses in their extended value chain from imminent collapse with calamitous consequences for the economy.
“We further request that the Federal Government suspends excise taxes in the manufacturing sector for a minimum of six months, to arrest the alarming decline in the sector”.
The OPSN also advised the Central Bank of Nigeria to urgently deploy measures to fully alleviate the Naira scarcity crisis and prioritise foreign exchange allocations to the productive sector.