FBN’s Cecilia Akintomide on how tax breaks can boost Nigeria’s economy

Tax breaks have emerged as a crucial strategy for Nigeria as it navigates the complexities of implementing ease of doing business initiatives. Speaking at the annual conference of the Nigerian Bar Association's Section on Business Law, Cecilia Akintomide, a non-Executive Director of FBN Holdings, emphasized the significance of tax breaks and incentives in driving business expansion and job creation within the nation. In a bid to address the current economic challenges facing Nigeria, Akintomide stressed the need for the identification of short-term, medium-term, and long-term solutions, moving beyond mere rhetoric towards impactful actions. The conference aimed to generate practical solutions that could be communicated to the government and the wider population to pave the way for economic growth and stability. One of the key recommendations put forth by Akintomide was the exploration of tax relief measures and incentives to stimulate business growth and employment opportunities. By offering tax breaks to businesses, resources could be reinvested, leading to expansion and job creation, particularly crucial in a country facing a significant unemployment rate of 23%. Akintomide highlighted the benefits of providing tax incentives to companies listed on the capital markets, citing higher corporate governance standards and ethical practices that these businesses adhere to, which warrant fiscal support. Some nations have successfully implemented measures like halving corporate income tax for listed companies, providing an immediate boost to the economy. Furthermore, she underscored the importance of alleviating the tax burden at various stages of the value chain, ensuring that shareholders receive adequate returns and are encouraged to reinvest in the economy. The delay in constituting the government cabinet was also identified as a critical factor contributing to economic uncertainty and hindering business activities. Akintomide emphasized that markets despise uncertainty, and the lack of cabinet appointments signal unpreparedness, creating a climate of instability detrimental to economic progress. Therefore, addressing delays in governance structures is vital to instilling confidence and fostering a conducive environment for business and investment.