• Tuesday, July 16, 2024
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ECCIMA worried over FG’s borrowing

ECCIMA worried over FG’s borrowing

Enugu Chamber of Commerce, Industry Mines and Agriculture (ECCIMA), has commended the National Assembly for speedy passage of the 2022 budget of N17.1 trillion but expressed concern over the federal government’s borrowing of N5 trillion to finance the deficit budget.

Emeka Nwandu, president, ECCIMA in an address at the 48 annual general meeting of the Chamber, held in Enugu, stated that continuous borrowing from the Central Bank of Nigeria (CBN), has left the nations exchange rate on all-time low

The chamber called on the federal government to improve on its efforts to save the Naira and the nation’s economy.

The chamber is also worried about the federal government’s plan to introduce N10 per a litre tax on all non -alcoholic, carbonated and sweetened beverages, through the finance Act, signed into law by President Muhammad Buhari on December 31, 2021.

“We think that this tax, if implemented, would be counterproductive, as reasons stated by the federal government for imposing this tax does not outweigh the unemployment issues it would generate”.

Read also: Experts flag use of debt, tax burden to fund 2022 budget

Nwandu however supported the raising of revenue for health-related and other critical expenditures as stated by the federal Government and suggested that high import duties should be placed on foreign manufactured drinks only, to encourage local manufacturers of beverage drinks.

ECCIMA further called on the federal government to play with caution on the implementation of the petroleum Industrial Act (PIA) and the potential removal of subsidy planned for this year 2022, to avoid inflationary pressure that could be detrimental to household income considering their slow income growth in Nigeria since 2015.

Nwandu commended Enugu state Governor, Ifeanyi Ugwuanyi for prompt payment of civil servant salaries as at when due, saying that such singular act contributed to a large extent, reduction of crime rate in the state .

Declaring the AGM open, the Enugu state Governor, Ifeanyi Ugwuanyi, represented by his deputy, Cecelia Ezeilo thanked ECCIMA for her efforts in contributing to the economic development of the state.

She promised that the state will always partner the chamber in making any economic policy to ensure that the small and medium entrepreneurs in the state are favoured.

The AGM produced a new executive of the Chamber led by Jasper Nduawike.