Business
NACCIMA Highlights Concerns Over Government Economic Reforms and Private Sector Growth
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has expressed concerns that the current economic reforms implemented by the Federal Government are not fostering growth within the private sector.
Instead, these reforms appear to be disproportionately benefiting the public sector.
The public sector encompasses the segments of the economy that are owned, controlled, and managed by the government, including various agencies and institutions responsible for delivering essential goods and services such as transportation, infrastructure, and public works.
Dele Kelvin Oye, President of NACCIMA, made these observations during an appearance on AriseTV News, stating, “In 2024, data, metrics, and statistics indicate that the private sector is shouldering the negative impacts of the nation’s economic reforms, enduring challenging conditions such as high inflation, increased borrowing costs, and currency devaluation.”
Oye emphasized the need for the government and its economic advisory teams to acknowledge the private sector as a vital stakeholder in the economy.
“While the public sector continues to thrive and expand, the economic benefits derived from recent reforms have largely been absorbed by the public sector through significant capital transfers and revenue increases.
In contrast, the private sector is grappling with escalating inflation, higher borrowing costs, unresolved foreign currency commitments amounting to 2.4 billion USD from the CBN, and rising operational expenses across all sectors.”
He further noted that the persistent imbalance caused by heightened public sector spending has been detrimental to the private sector, leading to value erosion due to excessive fiscal deficits financed through government borrowing at unsustainably high interest rates.
Looking ahead to 2025, Oye remarked, “The proposed expenditure framework appears to be heavily weighted towards substantial capital transfers to specific sectors that may not enhance national wealth.”
He advocated for the government to cultivate an environment that empowers the private sector to spearhead economic initiatives.
Business
12 states harmonise new tax reforms, says Oyedele
“Let us stop using consultants to collect taxes. It undermines our ability to do what is right. The new tax law says you cannot use consultants to do the routine work of the tax authority and its autonomy must be guaranteed.”
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, says that twelve states have so far adopted tax reform and harmonised the new acts with their laws.
Oyedele disclosed this during a presentation at the National Economic Council Conference in Abuja, yesterday.
Oyedele said that besides the 12 states, 13 states have the bills in their houses of assembly, while 11 states are in the final stages of presenting the bills.
He said it was important for the states to adopt and harmonise the new tax laws with their state tax laws to avoid multiple taxation.
He advised state governors to grant their internal revenue agencies autonomy.
“Let us stop using consultants to collect taxes. It undermines our ability to do what is right. The new tax law says you cannot use consultants to do the routine work of the tax authority and its autonomy must be guaranteed,” he said.
Business
Heineken to cut global workforce by 6,000 as beer demands falter
There are fears that Nigeria would be impacted as the company revealed that the cuts would be focused on non-priority markets offering fewer growth prospects.
• Heineken
Global brewer, Heineken, yesterday, said it would retrench 6,000 staff out of its 87,000 global workforce this year as it grapples with weak demand and rising costs.
The second biggest brewer by market value has promised to deliver higher growth with less resources as it looks to assuage investors who said it has fallen behind on efficiency.
This is coming right after the surprise January resignation of its current Chief Executive Officer, Dolf van den Brink, leaving the company scrambling for a new CEO.Also, sales across the sector are faltering amid strained consumer finances, geopolitical turbulence and bad weather.
The company said this productivity drive will unlock savings and reduce its global head count by 5,000 to 6,000 positions over the next two years, roughly seven percent of its global workforce of 87,000 people.
The company’s head of finance, Harold van den Broek, added that they are doing this to strengthen operations and to be able to invest in growth.
There are fears that Nigeria would be impacted as the company revealed that the cuts would be focused on non-priority markets offering fewer growth prospects.
He added that further cuts would also result from previously announced initiatives targeting Heineken’s supply network, head office and regional business units.
Outgoing-CEO van den Brink, who steps down in May, said that there was no update on the brewer’s search for a successor.
Along with weak demand, brewers are facing long-term declines in beer sales in some key markets, dented by issues such concerns over the health impact of alcohol consumption.
Heineken expects slower profit growth for 2026 of between 2 and 6 per cent against the 4 to 8 per cent growth it guided for last year.
Business
NAFDAC : FG directive to halt enforcement on sachet alcohol’s “False, Misleading “
“At no time has the Agency received any formal directive ordering the suspension of its regulatory or enforcement activities in respect of sachet alcohol products.”
The National Agency for Food and Drug Administration and Control (NAFDAC) has dismissed as false reports claiming that the Federal Government directed it to suspend enforcement actions against sachet alcohol and 200ml PET bottle alcoholic products.
In a statement signed by Mojisola Adeyeye, its director general, the agency described the publication as “false and misleading,” stressing that it had received no official communication from the Federal Government ordering such a suspension.
NAFDAC stated that it operates strictly within its statutory mandate and only acts on formally communicated government policies and directives.
According to the agency, “At no time has the Agency received any formal directive ordering the suspension of its regulatory or enforcement activities in respect of sachet alcohol products.”
The regulator reaffirmed its commitment to public health protection, regulatory compliance, and transparency in carrying out its responsibilities in line with established laws and due process. It emphasised that any decision affecting national regulatory actions would be conveyed through official government communication channels.
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