LCCI calls for urgent resuscitation of MSMEs post COVID-19

The Lagos Chamber of Commerce and Industry, (LCCI) has called for the urgent need to salvage investments across all levels, micro, small, medium and large enterprises in a bid to save the economy from collapsing over COVID-19 pandemic.

This was disclosed in a statement signed by the  Director-General of LCCI, Dr Muda Yusuf, who explained, “without investment, we cannot have jobs; aggregate demand would remain weak; government revenue would be in jeopardy as tax revenue plummets and economic sustainability will be at risk.”

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“This underscores the imperative of an urgent rescue package for business to enable investors to ride out the storms.  The following measures are hereby proposed for government’s considerations as well as relevant agencies.”

He further stressed that suspension of all forms of taxes for the health sector investors [pharmaceutical companies and hospitals, Medical Laboratories etc.  agriculture and agro-processing, Aviation and Hospitality sectors for at least one year.

“Extension of filing of annual returns, including payment of due amounts to 30th June 2020. Unconditional waiver of penalties and interests of all outstanding tax payments.”

“Temporary suspension of recently introduced 50 per cent increase in VAT till year-end. 50 per cent reduction in all taxes currently being paid by companies in manufacturing for one year, for Employees, PAYE should be suspended for a period of 6months. This would put some money back in the hands of the employees during this period to strengthen the purchasing power of citizens and stimulate output within the economy.”

“Health workers PAYE should be suspended for one year in recognition of their role as front liners in the battle against the COVID 19 pandemic.”

“Health sector raw materials and equipment should attract zero import duty.  This is necessary to incentivize greater private sector investment in the health sector.”

 “Manufacturing raw materials and intermediate products should attract import duty waiver for six months.  One key lesson of the COVID 19 is the imperative of domestic production and building capacity for self-reliance.

“The global supply chain disruptions took a heavy toll on the manufacturing sector.  To accelerate a rebound of the sector, this incentive is necessary.”

“Agro-processing inputs should enjoy import duty waiver for one year.”

According to him, “suspension of excise duty payment for manufacturers for one year. The greater commitment of government and its agencies to the patronage of made in the Nigerian products.   

“Government should create a strong monitoring framework to ensure compliance with the relevant executive order.”

“Import duty waiver on machineries without need for any bureaucracy, for at least 12month. This would facilitate the completion of ongoing projects by industrialists. The country needs growth as this would be key to project completion to encourage job creation.”

He noted that Palliatives announced by the CBN in response to this pandemic are commendable. 

“These include the one-year moratorium on CBN intervention facilities; interest rate reduction on intervention funds; creation of N50 billion credit facilities for SMEs; restricting and refinancing opportunities for existing facilities; activation of N1.5 trillion InfraCo project for building infrastructure; N100 billion facilities for pharmaceutical companies and healthcare practitioners, and N1 trillion loans to boost local manufacturing and production across sectors.”