ActionAid lauds FG’s withholding tax exemption

ActionAid Nigeria (AAN) has commended the federal government for exempting small businesses, manufacturers (SMEs), and farmers from withholding tax, a move that acknowledges the critical role of local industries and SMEs in driving economic growth and development. The AAN Country Director, Andrew Mamedu, who said this on Wednesday in Abuja in a statement, said that […]

ActionAid Nigeria (AAN) has commended the federal government for exempting small businesses, manufacturers (SMEs), and farmers from withholding tax, a move that acknowledges the critical role of local industries and SMEs in driving economic growth and development.

The AAN Country Director, Andrew Mamedu, who said this on Wednesday in Abuja in a statement, said that while they see this as a step in the right direction, they also sound a clarion call on the looming hunger crisis and pervasive insecurity in Nigeria which the government must be accountable for its inaction.

He lamented that the continuous interest rate hike by the Central Bank of Nigeria (CBN), aimed at curbing inflation, has unfortunately not yielded the desired results.

Mamedu said that while the hikes were intended to reduce inflation, prices continue to soar, leaving many Nigerians struggling to make ends meet.

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“AAN believes that the focus on interest rates alone is misplaced and that the root cause of inflation lies in the production sector. To truly tackle inflation, AAN urges the government to prioritize production and address the obstacles facing small business owners and farmers, including insecurity and lack of access to credit,” Mamedu said.

He also called for grants and low-interest loans for SMEs to be able to expand and thrive in the nation’s economy, as it is the biggest way to tackle poverty.

He said that the SMEs are the backbone of the nation’s economy and supporting them is crucial to addressing the hunger crisis and promoting economic growth.

The ActionAid Nigeria boss equally urged that the government expand the tax brackets for multinationals and big companies, as well as reduce tax holidays for them.

He said that the government needs to revisit the tax policies that have allowed multinationals to exploit the nation’s resources while paying minimal taxes.

He said, “This is unacceptable and perpetuates inequality. The nation needs a fair and progressive tax system that ensures everyone contributes their fair share. In addition, AAN is deeply concerned about the impact of insecurity on smallholder women farmers, who are critical to Nigeria’s food security.

“A recent survey conducted by ActionAid Nigeria across the country revealed that 73% of smallholder women farmers affirmed that insecurity has affected their food production, with many reporting loss of crops, livestock, and farming equipment due to violent attacks. This is unacceptable and demands immediate attention from the government.”