FG moves to address rising goods cost

By Ukpono Ukpong

President Bola Tinubu has mandated the Presidential Council on Industrial Revitalization and the Presidential Council on Fiscal Reform and Tax Policy Review to fast-track their reports and reviews and quickly come up with their recommendations.

This directive aims to ensure that the real sector and the citizens can begin to feel the impact of the Renewed Hope Agenda.

The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, disclosed this while briefing State House correspondents at the end of the council meeting presided over by President Bola Tinubu at the Council Chamber, Presidential Villa, Abuja.

“Today (Wednesday), the Council noted the rising cost of goods and services in the country, as well as the rising cost of doing business in Nigeria. We also noted the excitement and optimism in the real sector that the Renewed Hope Agenda will bring a prosperous 2024,” she said.

“We deliberated on how we can actually improve the business environment for manufacturers and industrialists. As you’ll recall, the priority of this government is to promote and protect local industries and manufacturers. This will mean that we must do all that is necessary to remove all the roadblocks and bottlenecks impeding or impacting businesses.

“Tinubu has always reiterated that Nigeria is open for business and that there are no more roadblocks. We are removing and we’ve removed these roadblocks, which include multiple taxation, multiple levies, customs duties, and various levies imposed on businesses, as well as infrastructure decay, including power.

“As you’ll recall, the President already set up the Presidential Council on Industrial Revitalization, as well as the Presidential Council on Fiscal Reform and Tax Policy Review. The Presidential Council on Industrial Revitalization was set up in October, and the Presidential Council on Fiscal Policy and Tax Review was set up in July 2023.

“Tinubu now mandated that this council must fast-track their reports and reviews and quickly come up with their recommendations so that the real sector and the citizens can begin to feel the impact of the Renewed Hope Agenda.

“As you will recall, the Presidential Council on Industrial Revitalization includes the following committees: Consumer Credit, Artisan Certification and Licensing, Trade Facilitation, Commodity Exchange, Mining and Solid Minerals, Oil and Gas, Creative Economy, Steel and Heavy Industries, and now Healthcare has also opted to join.

The Committee on MSMEs is also part of this council. “The FEC noted that when this committee finalizes its review and comes up with its reports, we will be implementing policies that will jumpstart the economy again and see us experiencing a double-digit growth rate in the GDP. We are on track to achieve the vision of His Excellency to reach a $1 trillion economy.

“For this to happen, we have been mandated and charged to come up with the resolution from those committees as quickly as possible. When this is implemented, we expect to see more job creation, a drop in prices of goods and services, and a total revival of the economy. We assured the FEC that we will do all that is necessary to come up with the resolution as quickly as possible so that Nigerians can begin to enjoy the shared prosperity and the Renewed Hope Agenda in 2024.”

Also briefing, the Attorney General of the Federation, AGF, and Minister of Justice, Lateef Fagbemi, discussed the importance of improving the welfare of Nigeria and Nigerians.

He said, “One of the major issues discussed was the issue of double taxation, which is critical for encouraging foreign direct investment. This time around, it’s about the relationship between Nigeria and the United Arab Emirates.

“You’ll recall that a while ago, the president was in the United Arab Emirates, and one of the matters that came up for discussion and negotiation is the agreement for the elimination of double taxation with respect to taxes on income, and the prevention of tax evasion and avoidance.

“The Council noted that the agreement between both countries, that is, between Nigeria and the United Arab Emirates, includes personal income tax, company income tax, petroleum profit tax, information technology levy, tertiary education tax, and capital gain tax. Because of the benefits that will accrue to Nigeria from this cooperation, the council agreed and directed that the agreement, which had been signed already, should be taken further. They authorized the Attorney-General and Minister of Justice to prepare a bill along this line to take to the National Assembly for ratification.

“The effect of this is that it will cease to be an ordinary agreement but an agreement between two countries. Other countries will follow, but the one that we will immediately leverage on is the one between Nigeria and the UAE.

“Apart from this, we have also decided that going forward, we should also have a very solid national policy on taxation that will drive or attract foreign investment. So, on the part of FDI, this was what was discussed and decided at the Federal Executive Council.”

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Commenting on the ratification of the Investment Promotion and Protection Agreements between Nigeria and the UAE, the Minister of Industry, Trade, and Investment, Dr. Uzoka-Anite, said, “With the approval, we can now send the already-signed IPPA to the National Assembly for ratification.

“The council also approved that the Minister for Industrial Trade and Investment should also immediately invoke Article 26 of that agreement. This mandates that we can review and amend some sections of the IPPA to conform with the current IPPA model that we’re using, which is a 2016 model.

“So that has been approved for ratification, and we will immediately proceed to invoke the section that will enable us to review and amend the sections that were not originally viewed as favorable.”