Report Reveals: Some Companies Prioritize Security Budget Over Tax Payments

Report Reveals: Some Companies Prioritize Security Budget Over Tax Payments....KINDLY READ THE FULL STORY HERE▶

The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, highlighted that many manufacturers prioritize spending on security for their assets over tax contributions to the government. Ajayi-Kadir made these remarks during an appearance on Channels Television’s Sunrise Daily program.

He emphasized that security and energy costs significantly inflate manufacturers’ production overheads, consequently leading to higher prices for goods within the country. Ajayi-Kadir expressed concern over the adverse impact of insecurity, particularly in the North-East region, where approximately 60 percent of MAN members have ceased operations due to security challenges.

He underscored the substantial expenditure on security, revealing that some manufacturers allocate more resources to security expenses than they do to tax payments, necessitating continuous investment in security measures.

Discussing the recent electricity tariff hike, Ajayi-Kadir noted the additional burden it places on manufacturers, contributing to elevated production costs and ultimately leading to increased prices for consumers. While acknowledging that power generation isn’t charity, he emphasized the importance of constructive engagement between stakeholders, including manufacturers and the Nigerian Electricity Regulatory Commission (NERC), to address tariff adjustments effectively.

Ajayi-Kadir criticized what he described as arbitrary increases in electricity tariffs, citing the exorbitant cost of power supply as a significant challenge for many manufacturers in Nigeria. He called for collaborative efforts between the government and stakeholders to mitigate the adverse effects of economic reforms and policies, stressing the need for a cooperative approach to address existing challenges.

He emphasized the necessity of constructive dialogue and collaboration between the private sector and the government to navigate economic reforms successfully and ensure the well-being of the populace.

In summary, Ajayi-Kadir emphasized the critical need for coordinated efforts to address security challenges, rising energy costs, and other obstacles facing the manufacturing sector in Nigeria, advocating for a collaborative approach between stakeholders and the government to foster sustainable economic growth.

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