President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has called on the government to create an enabling environment for private businesses to thrive, prioritise fostering private sector growth and recalibrating its economic policies to tackle Nigeria’s pressing economic challenges He stated,
“Government must work with the private sector. We cannot tax ourselves out of this problem. To increase competitiveness, taxes should be reduced, and policies should align with those of neighbouring countries to make Nigeria more attractive for investment.”
Speaking during an interview on ARISE News on Tuesday, Oye emphasised the importance of reducing government expenditure, promoting private sector competitiveness, and improving collaboration with stakeholders.
While supporting government reforms, Oye called for adjustments to their implementation.
“We are not advocating for a reversal of reforms but a recalibration. The private sector must lead in some of these efforts. It is not the business of government to be in business; government is a facilitator. It must create an environment that attracts investments into Nigeria.”
Addressing the recently proposed VAT and revenue reform bills, Oye noted that increased taxation would exacerbate economic difficulties.
“The issue is not necessarily about the bill,” he said. “What is important is that we normally have inflation when government has spent its revenue and the tendency to borrow or increase taxes to fill that gap only makes Nigeria poorer.”
He lamented the shrinking private sector while the public sector expanded, which he attributed to deficit financing and government policies.
“Government must listen more to businesses because it is the private sector that generates the income used to pay loans. Loans are not sustainable until government cuts costs in its own sector.”
Highlighting NACCIMA’s recommendations, Oye said, “We have outlined 12 recommendations in our New Year message. Chief among them is addressing the naira’s instability, which deters investment. Nobody will invest in a climate where the currency depreciates daily.” He further urged the government to reduce its operating costs, curb deficit financing, and stop unsustainable borrowing, particularly in the local market.
Oye expressed optimism about improved collaboration with the government, acknowledging recent engagements with the Minister of Industry, Trade, and Investment. However, he called for broader involvement across ministries and agencies, especially the Central Bank of Nigeria (CBN), whose policies he criticised for disproportionately affecting the private sector.
“The CBN must reconsider its approach,” he said. “Increasing interest rates punishes the private sector, which is not the cause of these economic problems. The president’s eight-point agenda includes promises of single-digit loans. Paying off local debts and limiting public borrowing will make credit accessible and help the private sector grow.”
Oye further urged the government to adopt innovative strategies to restore Nigeria’s position as Africa’s leading economy.
“We must find a way to make Nigeria work. It is in everyone’s interest for the government to succeed because if it fails, we all lose. My members are ready to partner with the government to turn the economy around.”
Faridah Abdulkadiri
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