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Bimbola Oyesola
The Nigeria Employers’ Consultative Association (NECA), has commended President Muhammadu Buhari for declining assent to the National Housing Fund (Establishment) Bill 2018, forwarded to his office by the National Assembly.
This was even as it says that it will strangulate businesses if it comes into operation.
The association’s reaction came on the heels of directives from the Presidency that the Bill should be returned to the National Assembly for amendment of the contentious provisions.
Director-General of NECA, Mr. Timothy Olawale, stated that the decision of the Presidency in declining assent to the Bill was laudable, adding that it was a demonstration of the government’s responsiveness to the concerns of organised businesses.
“It is indeed an affirmation of government’s true commitment to the Ease of Doing Business Initiative”, he said. He noted some of the contentious provisions in the Bill as: “the insertion and introduction of a Sustainable Development Levy of 2.5 per cent ex-factory price before transportation cost for each 50 kg bag of cement or its equivalent in bulk.”
He explained the implications of this provision to include increase in the cost of building materials and the fact that companies that locally produce cement will lose market competitiveness. Manufacturers and businesses are already saddled with several challenges such as infrastructural decay, power, among others. Some companies are closing shops due to some of these challenges while others are still struggling to stay afloat. The proposed Sustainable Development Levy would definitely lead to an increase in the cost of doing business, and would likely be passed to the consumers whose purchasing power is already weak”, he warned.
