Excise Duty Hike Will Lead to Factory Closures, Lament Manufacturers
Finance Minister
By Our Reporter
The Manufacturers Association of Nigeria (MAN) on Tuesday expressed concerns over the recent hike in excise duties, saying the economic measure will lead to closure of factories,
President of MAN, Mr Francis Meshioye, who disclosed this at a press conference in Lagos said the measure will be a threat to businesses, adding that it will lead to losses of jobs as well as decline in exports.
Meshioye who spoke on the 2023 Fiscal Policy Measures published recently said the excise duty hike was a clear way of reneging on the promise made to the association by the Ministry of Finance, Budget and National Planning in March this year.
Describing the increase as a shock to the association members, he said the hike came when the sector was suffering crisis occasioned by earlier scarcity of naira and continued lack of access to foreign exchange.
He said the brewing sector which will suffer the hike more had experienced decline of 169 percent in profit before tax in the first quarter.
He added, , “The manufacturing sector has been struggling with crashing sales, mainly attributable to the sustained naira scarcity. A continuing decline in sale volumes will necessitate production cuts and a reevaluation of investments in the sector. Specifically, if sales proceeds can no longer sustain business overheads and operating expenses, businesses will be forced to scale down their operations which would result in factory closures, job losses, a decline in exports and much more.’’
The Manufacturers Association of Nigeria (MAN) on Tuesday expressed concerns over the recent hike in excise duties, saying the economic measure will lead to closure of factories,
President of MAN, Mr Francis Meshioye, who disclosed this at a press conference in Lagos said the measure will be a threat to businesses, adding that it will lead to losses of jobs as well as decline in exports.
Meshioye who spoke on the 2023 Fiscal Policy Measures published recently said the excise duty hike was a clear way of reneging on the promise made to the association by the Ministry of Finance, Budget and National Planning in March this year.
Describing the increase as a shock to the association members, he said the hike came when the sector was suffering crisis occasioned by earlier scarcity of naira and continued lack of access to foreign exchange.
He said the brewing sector which will suffer the hike more had experienced decline of 169 percent in profit before tax in the first quarter.
He added, , “The manufacturing sector has been struggling with crashing sales, mainly attributable to the sustained naira scarcity. A continuing decline in sale volumes will necessitate production cuts and a reevaluation of investments in the sector. Specifically, if sales proceeds can no longer sustain business overheads and operating expenses, businesses will be forced to scale down their operations which would result in factory closures, job losses, a decline in exports and much more.’’
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