The Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has raised concerns over the potential loss of over $200 billion in Foreign Direct Investments (FDI) and the risk to more than 600,000 jobs if proposed tax reforms targeting Free Trade Zones (FTZs) are implemented.
During the second day of the public hearing on the tax reform bills, NACCIMA, alongside the Manufacturers Association of Nigeria (MAN), the Arewa Consultative Forum, and the Oil Producing Trade Sector, presented submissions before the House Committee on Finance. The groups warned that the proposed tax measures could undermine the economic benefits of FTZs, which have been instrumental in attracting investments and creating jobs.
Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Mr. Taiwo Oyedele, provided insights into the financial landscape, noting that while currency in circulation is about N4 trillion, the total money supply exceeds N100 trillion. He emphasized the need for balanced tax reforms that do not stifle economic growth or deter investments.
NACCIMA and other stakeholders urged the government to reconsider the proposed tax measures, highlighting the critical role of FTZs in driving industrialization, boosting exports, and generating employment. They called for a collaborative approach to ensure that tax reforms align with the broader goals of economic development and job creation.
The public hearing continues as lawmakers and stakeholders deliberate on the potential impact of the tax reforms, with a focus on striking a balance between revenue generation and fostering a conducive business environment.
