City Info
NECA lauds Buhari for refusing assent on National Housing Fund Bill
Nigeria Employers’ Consultative Association, NECA, yesterday, praised President Muhammadu Buhari for declining assent to the National Housing Fund (Establishment) Bill 2018 sent to him by the National Assembly.
NECA, in a statement, said the body was very happy that President Buhari directed that the Bill be returned to the National Assembly for amendment of the contentious provisions.
Speaking in Lagos, Director-General of NECA, Mr. Timothy Olawale, said: “The decision of the Presidency in declining assent to the Bill is laudable, a demonstration of the government’s responsiveness to the concerns of organised businesses and an affirmation of government’s true commitment to the Ease of Doing Business Initiative.
“Some of the contentious provisions in the Bill included the insertion and introduction of a Sustainable Development Levy of 2.5% ex-factory price before transportation cost for each 50kg bag of cement or its equivalent in bulk.
“The implications of this provision 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 infrastructure decay, power, etc.
“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 further noted that Sustainable Development Levy is a form of VAT and “our courts had frowned against imposition of double taxes on businesses”.
Mr. Olawale also contended that in the Bill, “the contribution by Nigerian workers was changed from 2.5% of monthly basic salary to “2.5% of monthly income” (which is total emolument). This will weaken the purchasing power of the average worker and could lead to defiance and deliberate attempt at non-compliance.”
He raised concern over the huge sanctions provisions in the Bill, of up to N100 million, among others, saying “this could amount to the Scheme being seen as pecuniary driven, which will defeat the purpose or objective of the Housing Scheme.
“We urged that government and relevant stakeholders reconsider the Bill with a view to amending contentious provisions.”
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