Manufacturers List Demands FG Must Adopt To Get Economy Back On Track

In order to get the Nigerian economy back on track amidst the coronavirus outbreak, manufacturers and other business owners in Nigeria have tabled their demands to the Federal Government. The various demands were contained in the Lagos Chamber of Commerce and Industry's (LCCI) COVID-19 Impact Report Survey.

What are the demands of manufacturers?

Manufacturers and other business owners demanded the Nigerian Government should offer them a one-year tax break due to the impact of coronavirus on the private sector. The manufacturers also requested that the new Value Added Tax (VAT) implemented this year be suspended.

It was stated that healthcare and pharmaceutical companies, airlines, manufacturers, agro-processors, Small and Medium Enterprises and the hospitality sector are in need of the one-year tax break to mitigate the adverse effect of COVID-19 on their businesses.

The report stated that the VAT be postponed till year-end to enable the private sector recover from the blow of the virus and impact of the lockdown on their business activities, “Recognising the role of business and investment in the economy, it is imperative to have a strategy aimed at enabling businesses to navigate through the current storm caused by the pandemic and jumpstarting the economy in general.” the report reads.

Recall that President Muhammadu Buhari had ordered a lockdown for about two months. This directive was resorted to due to the outbreak of the coronavirus. Restriction was placed on movements, with just essential businesses like telecommunications, delivery, banks, and few others allowed to conduct skeleton operation. The lockdown cost many manufacturers' earnings in the last month of Q1 and the first month of Q2 2020.

Here's what you need to know about the report

The report, which was signed by the Director-General of LCCI, Muda Yusuf, was collated to determine the impact of the lockdown on businesses and ensure an enabling environment for the private sector. It was learnt that Lagos State was used as a case study, due to “its commercial and economic importance to Nigeria.”

The report covered operations from several sectors of Nigeria's economy, including food processing, agriculture, financial services, professional services, ICT, exports, trade and freight forwarding.

What they discovered during survey

It was disclosed that 81 per cent of the businesses sampled were adversely affected by the lockdown while 17 per cent of the businesses were moderately impacted.

Also, the report stated that 50 per cent of businesses in the services sector were severely affected by the lockdown, causing lower demand from individual and corporate clients for services, while non-essential services also saw demand decline. Food and essential items were said to have been prioritised by clients.

It was also disclosed that corporate clients ran skeletal operations. Meanwhile, the report stated that the public and private sector must make effort to protect businesses, jobs and income.