Nigerian Government Gets A Spanking For Persistent Economic Woes

ActionAid Nigeria has applauded the government for exempting small businesses, manufacturers, and farmers from withholding tax, recognising the importance of local industries and Small and Medium Enterprises (SMEs) in driving economic growth and development.
While acknowledging the beauty of the government’s move, ActionAid issued a clear warning about Nigeria’s looming hunger crisis and pervasive insecurity, saying the government should be held accountable for its inaction.
The statement read: “The Central Bank of Nigeria’s continuous interest rate hikes, intended to reduce inflation, have unfortunately not yielded the desired results. While the hikes were meant to reduce inflation, prices have continued to rise, leaving many Nigerians struggling to make ends meet.
“Aliko Dangote, Chairman and CEO of the Dangote Group, has warned that the interest rate hike will have disastrous consequences for businesses, making it nearly impossible for them to survive.” The Manufacturers Association of Nigeria (MAN) has echoed Dangote’s concerns, calling for policies that benefit local industries. This emphasises the need for a thorough examination of the tax system to ensure that it is fair, equitable, and supportive of local industries.
“ActionAid Nigeria believes that focusing solely on interest rates is misplaced and that the root cause of inflation is in the production sector. To truly combat inflation, ActionAid Nigeria calls on the government to prioritise production and address the challenges that small business owners and farmers face, such as insecurity and a lack of credit.
“ActionAid Nigeria also advocates for grants and low-interest loans to help small and medium-sized enterprises (SMEs) expand and thrive in this economy, as this is the most effective way to combat poverty. They are the foundation of our economy, and assisting them is critical to addressing the hunger crisis and promoting economic growth. ActionAid Nigeria demands that the government take immediate action to address the widespread insecurity, such as investing in community-led peacebuilding initiatives and providing assistance to victims of violence. Furthermore, small business owners and farmers require credit to expand their operations and boost production. We urge the government to implement policies that provide SMEs with affordable credit and promote sustainable agricultural practices.”
ActionAid Nigeria demanded that the government expand tax brackets for multinationals and large corporations, as well as reduce tax breaks for them, stating that: “The government needs to revisit the tax policies that have allowed multinationals to exploit our resources while paying minimal taxes.” This is unacceptable, as it perpetuates inequality. The country requires a fair and progressive tax system that ensures that everyone pays their fair share.
“ActionAid Nigeria is also concerned about the impact of insecurity on smallholder female farmers, who are critical to Nigeria’s food security. According to a recent survey conducted by ActionAid Nigeria across the country, 73% of smallholder women farmers believe that insecurity has impacted their food production, with many reporting crop, livestock, and farming equipment losses due to violent attacks.
“This is unacceptable and requires immediate action by the government.
Furthermore, combating food insecurity is critical to addressing the hunger crisis, and ActionAid Nigeria urges the government to invest in agriculture and assist small-scale farmers in increasing food production and availability. Furthermore, combating poverty and inequality is critical, and ActionAid Nigeria advocates for investments in social protection programmes and progressive taxation to ensure that all Nigerians have access to the resources they require to thrive.
In conclusion, while ActionAid Nigeria applauds the government the withholding tax exemptions, it urges the government to take bold and immediate action to address the looming hunger crisis, widespread insecurity, and production barriers.
According to the statement, ActionAid Nigeria will continue to advocate for policies and actions that prioritise people’s needs over the interests of a few. The future of our country and its people is a spanking and we must act right away.”