We express our gratitude to God for His mercies. In general, it is evident that we have not yet reached a point where every Nigerian can breathe a sigh of relief.

How has the persistent devaluation of the naira impacted businesses in the Southeast?

The devaluation of the naira is not confined to the Southeast alone; it affects the entire nation. As the naira continues to devalue, its purchasing power weakens, leading to increased costs for commodities, including raw materials. What could be purchased for N200 in 2021 now costs as much as N1,500 today. A bag of rice is being sold for prices ranging from N32,000 to N56,000, while a bag of cement costs N5,000. Currently, the exchange rate in the parallel market stands at an alleged N950 per US dollar. Inflation is on the rise, causing hardships for businesses, the underprivileged, and the general population.

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The removal of oil subsidies has resulted in significant price hikes for petroleum products and other goods. How has this affected your operations in the manufacturing industry?

The removal of oil subsidies may align with the government’s fiscal needs, but it ought to have been a subject of discussion with stakeholders. As it stands, the sudden removal of oil subsidies has adversely affected everyone, especially the less fortunate. The prices of essential goods have surged beyond the means of ordinary Nigerians. Recently, petrol prices have fluctuated between N620 and N700 per litre, depending on one’s location in the country.

Inadequate power supply remains a major obstacle for industries across the nation. How has this challenge impacted your business?

For a long time, we have relied on generators to power our production machinery due to inconsistent power supply. We purchase diesel at prevailing market rates, incurring significant expenses. Consequently, when considering production costs, the prices of our products have had to increase. Some industries, airlines, pharmaceutical companies, and others have been forced to shut down due to soaring production costs. Some have downsized their workforce, while others struggle to pay their employees.

Critics blame the government for the naira’s instability and poor resource management. What is your perspective on this issue?

Economic and business growth thrive in a stable currency environment with affordable production factors. In a nation with an unstable currency, it’s impossible to talk about economic or business growth. Naira devaluation weakens the currency, reducing its purchasing power and driving up the costs of industrial production materials.

Furthermore, poor resource management leads to poverty, especially when government policies favor a select few wealthy individuals. To stimulate economic and business growth, the government should prioritize stabilizing the naira and implementing policies that support the impoverished.

There have been concerns about the government’s increasing borrowing and debt burden. What is your take on this matter?

Borrowing is a common practice worldwide, usually done for specific purposes and with a plan for repayment, including interest. Governments borrow to address their financial challenges, but continuous borrowing without repayment increases the debt burden. Borrowed funds should be invested in projects, industrial development, and other profitable ventures to generate income and facilitate timely repayment. No country can sustain itself solely through borrowing.

The Central Bank’s cashless policy and naira swap faced significant challenges. How do you believe this policy should be managed?

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The cashless policy had a substantial impact on everyone, leading to cash shortages and long queues at banks. Such important policies, including the removal of fuel subsidies, should not be rushed but should involve consultations with stakeholders to avoid negative consequences. The policy should primarily apply to large-scale businesses and multinationals engaged in extensive monetary and financial transactions. Petty traders, hawkers, and small-scale farmers, among others, should be exempt from the policy.

The taxation policy in the country, particularly in the Southeast, has faced criticism. President Tinubu has established a fiscal policy and tax reform committee. What are your thoughts on this?

Taxes are a legitimate source of government revenue, but concerns exist about excessive taxation and multiple levies. The increase in value-added tax (VAT) to 7.5% from 5.2% during President Muhammadu Buhari’s administration for certain products has faced criticism. In the Southeast, toll gates impose substantial costs on transporting goods from Onitsha to Aba. Even small-scale operators like motorcycle riders, cart pushers, groundnut vendors, vegetable sellers, and street traders are subjected to taxes and levies. It is troubling that those collecting these levies from the less privileged are often well-off individuals with cars and comfortable lifestyles. There is a need to review the tax policy to alleviate the burden on the poor and exclude them from taxation.

Additionally, the government should focus on industrialization in the Southeast to create employment opportunities for the eligible population. As a governmental institution, it should continue to take the necessary steps to improve the well-being of the people.

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