SMEs seek legislation, executive order to streamline taxation
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Nigerian trade experts and operators of small and medium-sized enterprises (SMEs) have called for a legislation and presidential executive order to regulate taxation of small businesses to expand their survival rate and capacity for Africa Continental Free Trade Area (AfCFTA). This, they opined,will strengthen the Nigerian SMEs and prepare them to take advantage of opportunities offered by the continental free trade regime.
Speaking at a webinar organised by the Policy Centre of Abuja Chamber of Commerce and Industry to mark the World MSME Day, leading experts in the field posited that the legislation and executive order are urgently needed to enforce harmonised taxation for SMEs as provided in the new national MicroSmall and Medium Enterprise (MSME) policy.
Dikko Radda, director general of Small and Medium Enterprises Development (SMEDAN), described the new national policy as a product of extensive consultation with stakeholders, submitting that the challenges facing the sector will be resolved with the implementation of the policy.
A cross section of speakers also emphasised the need to create mechanisms for the enforcement of the policy as many MSMsE are dying prematurely due to multiple and excessive taxation.
Chijioke Ekechukwu, CEO of Bristol Investment Limited affirmed that since SMEs contributed over 50 percent of the GDP, a legislation harmonising taxation for the sub-sector is needed.
Corroborating Ekechukwu’s position, Bashir Maidugu, special adviser on trade and investment to the Borno State governor posited that such a legislation will permanently address challenges of taxation that are killing many businesses and hindering their readiness for AfCFTA.
Sijuwade Kayode, vice president, commerce, Abuja Chamber of Commerce and Industry (ACCI), suggested that while legislation is being worked on, the president should issue an executive order, enforcing implementation of existing incentives for SMEs as well as a robust legislation to create a one stop tax payment system for SMEs.
Al-Mujtaba Abubakar, ACCI president, commended the federal government for the conclusion of the national MSME Policy even as he lauded the partnership between ACCI and SMEDAN to drive the implementation of the new policy.
“This partnership is an indication that the policy is not meant to be an academic exercise but a genuine demonstration by this administration to strengthen the Nigerian economy, he noted.
Making a case for the government to disburse financial interventions to SMEs through the chamber movement in Nigeria, Abubakar explained that as a corporate body with rules and due process, the chamber movement will save the government all the “headaches” of data gathering, and registration of businesses that require financial interventions.
“The chamber movement has comprehensive lists of MSME across Nigeria. It will, therefore, be easier for government, not just to liaise with the chambers of commerce, but to also have feedback. The chamber represents businesses and the impact of financial interventions will be better felt if such interventions are routed through the chamber movement,” he added.
Speaking on the MSME celebration, the ACCI president said Nigeria is poised to expand her influence across Africa through trading activities, adding that Nigeria’s MSME are energized and are poised to storm the export markets in the spirit of AfCFTA.
The webinar ended with a four point recommendations from participants which included the need for nationwide sensitisation on the benefits of the new policy for SMEs; the need for an executive bill to harmonise SME taxation; the need for an executive order to enforce existing incentives for SMEs; and a recognition of SMEs; pivotal position under the AfCFTA.