Yemisi Izuora
Mr. Afam Mallinson Ukatu, the Managing Director of NISPO, has said though the decision to close land borders by federal government is not bad, but the authority did not give enough window to alert those that import or export through the land borders of the country that at a specific time, the border would be closed.
Above all he said the action has exposed institutional weakness of the country as exemplified by lack of proper equipment of the Nigeria Customs Service, NCS.
Afam, who spoke at the end of the year workshop/Retreat of the Commerce And Industry Correspondents Association Of Nigeria (CICAN), on Tuesday in Lagos with the Theme: Impact of Border closure on the Real sector Business: Way forward in 2020″ observed that if the Nigeria Customs is at the top of its duty, the government has no reason to close the border.
“If the custom officers are properly equipped and orientated, they will do the right thing. Why should the customs be waiting for border closure pronouncement of the executive before they take stringent steps to checking smuggling?” he said.
Border closure according to him, is not a solution, as what is needed is a proper policy instrument that will check and track illicit trade perpetrators.
Three is no country in the world that exists in isolation, but strong and adequate policies are put in place and also enforced in the proper manner. For instance, the Chinese has several scanners at its land borders and numerous check points that would not allow illicit trade to thrive.
Most of our manufactured goods are sold in the neighboring countries, but with border closure, manufacturers now find it very difficult to move their goods across the border,he said.
He therefore urged the government, to formulate policies that will stimulate economic growth, provide the necessary gadgets at the country’s land borders and recruit more persons into customs service to increase the man power needed.
Government should also fortify the landed borders with electronic gadgets and implore more scientific approach in the method of its operations, enforce ECOWAS trade libralisation agreements, fix the much needed infrastructure to make locally manufactured goods more competitive and improve the ease of doing business.
“In my capacity as the National Chairman of the Non-Metallic Mining Group of MAN, I am calling on the Federal Government to put in place the proper policy measures that will propel economic development, especially in the mining sector.
Again, since the government cannot revitalize the power sector, let it be fully privatized, as long as there is constant light, manufacturing will flourish.
However, the most unfortunate situation is that the government has not in any way enforced the prosecution of illegal mining activities taking place all over the country, especially the foreigners that have taking over the Nigerian mining space, thereby causing hazards to the country as a whole.
Against this backdrop, we need policies that will make the sector competitive enough so that we would also have what to bring to the table especially now that the country has signed the African Continental Free Trade Agreement (AfCFTA), otherwise Nigeria manufacturing sector will fizzle out in no distant time.
Again, there has been a long battle between tax authorities and manufacturers in the country over multiple taxation of our businesses and if the issue of multiple taxation is not urgently addressed by government, more manufacturing companies are likely to exit the economy.” he said.
Afam advised the government to also look into multiple taxation and vat as a matter of urgency.
“I have always agued which is also a known fact that taxes are being paid on your turnover, but what of a situation where a manufacturer is losing money. It is obvious that a manufacturer produces and still losses money and you are still expected to pay your tax. There should be a system whereby you are evaluated by the tax authorities just like China, USA and other countries. There is what they keep as special rebate for manufacturing companies, because this is what encourages people to go into manufacturing.
Without manufacturing, reduction in unemployment would be very difficult. It is obvious that government can only provide about 10 percent of the total job requirement of the population, while manufacturing can generate over 60 – 70 percent of the needed employment in any economy.
I am using this means to call on the authorities to revolutionaries the power sector, because what we spend in proving our own power is outrageous, and this is telling much on our cost of production and if they want this country to move forward, because the present state of power in the country is worse than yester years.
In Nigeria today, a lot of private businesses have closed down do to inability to access funds. This is because the cost of funds is always high, not just that it is at double digit but sometimes as high as over 30%, which is not healthy in a country like ours where the manufacture has to provide all the requirements to produce.”
Moreover, if you even have the opportunity of accessing loan at a very high cost, they will request for collaterals that you may not able to provide.
He concluded by encouraging investors to know that there is huge market in Nigeria, they should not be discouraged by the massive infrastructural deficit.