LCCI Seeks For Review Of Trade Policy To Boost Investment | Independent Newspapers Limited
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LCCI Seeks For Review Of Trade Policy To Boost Investment

Posted: Sep 11, 2015 at 12:02 am   /   by   /   comments (0)

Stories by Sylvester Enoghase,


The Lagos Chamber of Commerce and Industry (LCCI) on Thursday called on the Federal Government to review some trade policy measures to boost investments and customs revenue.

The Chamber also called on Government to review the nation’s current tax regime to make the tax system more progressive in character, especially with regards to consumption tax.

LCCI’s President, Remi Bello, made the calls at the 3rd quarter review press conference organised by the Chamber in Lagos.

He said the Chamber is pleased to observe that first 100 days of the present administration has positive improvement in power supply; the expenses on fuel either PMS or diesel has reduced either by businesses or households, which has been widely acknowledged across all sectors of the economy and households.

“On revenue and cost dimensions, the Government needs to review some trade policy measures to boost customs revenue. Already the Nigeria Customs Service is experiencing sharp declines in revenue as a result of the new tariff on vehicles and the forex restriction measures by the CBN.  These need to be reviewed in the light of the revenue backlash,” he said.

“Tax administration needs to be strengthened for effectiveness and reduction of leakages in tax revenue. The issue here is not about increase tax rates, but making the system more efficient,” he added.

Commenting further, Bello said: “CBN foreign exchange policy needs to be urgently reviewed to encourage the inflow of autonomous funds into the foreign exchange market.

“The current tight exchange controls is a major disincentive to the inflow of diaspora funds, export proceeds and other autonomous funds into the economy, thus worsening the foreign exchange crisis.

“The CBN needs to be creative in its fight against money laundering in order to minimize disruptions to economic activities. Its current approach has caused considerable disruptions to economic activities in the country.”

According to Bello, the introduction of the Treasury Single Account (TSA) by the Government is a welcome development, stressing that before now most revenue generating MDAs are not remitting the appropriate revenues to the federation account.

He said the Government also needs to put a stop to the fuel subsidy regime to save the country an estimated N1 trillion annually, adding that “There is in fact no reason for the current administration to retain kerosene subsidy for one day.”

“We note the more rigorous action in the war against terrorism. Although the challenges of insecurity and terrorism had persisted, it is evident that the present administration has committed considerable resources to the fight against terror.

“We also note and commend the regional and global alliances that the administration has been building to tackle the menace of insecurity,” he said.