Just as the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed worries over the negative impact of the recently passed Finance Bill 2022 by the National Assembly on the growth and development of the private sector, the Lagos Chamber of Commerce & Industry (LCCI) has lamented the negative impact of the naira redesign on businesses.
The Director-General of LCCI, Dr Chinyere Almona in an interview averred that “with the launch of the redesigned naira notes last December, expectations were high for the smooth transition to the use of the new notes for business transactions across the country. We regret to note that expectations have been dashed, business deals impeded, and loss of time and value experienced by many. “The Central Bank needs to enlighten the public on grey areas about the scarcity of the new Naira notes in addition to strengthening its policy implementation capacity. This is the minimum expectation in the face of a currency crisis in which we find ourselves.”
The new naira redesign, he stressed, has triggered varied reactions and feedback that suggest that related issues like the phasing of old currency notes, withdrawal limit, and the scarcity of new notes may have started to impact businesses and social livelihood beyond intentions. “While banks have endeavored to meet the currency demands of their customers through Automatic Teller Machines, and electronic transfers, the scarcity of the naira has rendered their efforts ineffective,” he stressed.
Commenting against the Bill, NACCIMA said for a sector already weighed down by scarcity of forex, poor business environment, high cost of energy, among other macroeconomic indices.
It said any further tax increases on businesses as contemplated by the 2022 Finance Bill might lead to shut down of many companies and worsen the already bad unemployment crises in. Speaking at its First Quarter Press Briefing in Lagos, NACCIMA National President Ide John C. Udeagbala, lamented that attempts by the 2022 Finance Bill to add more financial burden on the private sector that is struggling to keep businesses afloat would suffocate businesses. He pointed out, for instance, that barely two years after the government raised education tax from two per cent to 2.5 per cent, with many companies still struggling to adjust to the increase, the same tax head was being raised to three per cent.
