The Abuja Chamber of Commerce and Industry (ACCI) has stated that the increasing level of inflation, high taxes, and high-interest rates are leading to the closure of many businesses in the country.
The President of ACCI, Dr. Al-Mujtaba Abubakar, in a new year message, Sunday noted that high taxation, with its consequent counterproductive effect, has brought about an unemployment crisis which can only be remedied with the government broadening its tax base and reducing tax rates.
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Abubakar said the government should endeavour to reduce them in 2022 to induce growth in the economy.
He said: “Increasing level of inflation, high taxes, and high-interest rates contribute to increasing the cost of production. This has resulted in many businesses not breaking even and many are closing shops. The situation is further complicated by insecurity challenges and the exchange rate instability. We recommend easing the harsh business environment by transforming regulatory agencies into facilitating bodies.”
Abubakar, while stating businesses in Abuja are subjected to more than five types of taxation, called for a change for SMEs to thrive and employ more workers to ease the increasing level of unemployment.
He said the chamber believes that Nigeria’s economy would grow when the government’s policies, agencies, and programmes facilitate rather than impede businesses when there is a synergy between the public and private sectors.
He assured that the Chamber is ready to fully support government at all levels in the drive to grow the economy, create wealth and resolve national economic challenges.
He however urged business owners to remain undaunted and consistent in applying innovative methods and strategies to sustain their businesses in 2022.
“Operators of small- and medium-scale businesses should not relent but continue to advocate for the improved business climate in Nigeria. COVID-19 has pushed businesses around the globe over the technology tipping point, giving rise to new industry challenges, and has transformed business forever,” he noted.
He said with carefully formulated tools and good preparation, the toughest challenges could be turned into opportunities. He, therefore, called on the government to intensify efforts in providing the technology and digital infrastructure needed for new business techniques in line with current realities.
