Fed Govt Plans Tariff Concession For SMEs  
 

23rd June 2008

The Minister of Commerce and Industries, Chief Charles Ugwu, said at the weekend, that the Federal Government would grant tariff concession to Small and Medium Enterprises (SMEs).

Ugwu, who spoke through Mrs. Olu Bolade, a Director in his ministry at the opening of the first International Trade Fair for Nigeria Exportable Products organized by the Local Government Small and Medium Enterprises Scheme (LOGSAMES) in conjunction with ministry, said, the government would continue to expand the range of incentives to promote investments.

The current tariff regime from 2002 is being reviewed to ensure that varying tax and tariff concessions are granted to SMEs.

Adducing reasons for the concessions, the Minster stated, "This is to ensure that they will be able to provide goods and services that would enable them compete favourably in terms of economies of scale.

"The imposition of high tariff on foreign goods where domestic Industries have comparative advantage would be ensured to offer them due protection.

"To complement this effort, assistance would be given to SMEs for standardization of their products to ensure compliance with International Standard Organization ISO standards to make them compete in the export market when such products are to be sent outside the country."

On the importance of the SMEs to the economy, Ugwu said, "SMEs sub sector has a big potential in contributing to the national development of any nation."

"It is my hope that the gains of this Trade Fair and exposure that will be acquired would enhance our efforts to achieve greater heights in our Industrial pursuit.

"This Fair will serve as the barometer to ascertain the level and pace of our industrial progress to ensure that the country’s aspiration to be among the 20 top players in the world economy is achieved by the year 2020."

The National Coordinator of the Trade Fair, Mr. Thaddeus Ugbodoaga said the banks have failed in the area of non-oil sector investments.

He words, "Let me say it loud and clear with all sense of humility that 90% of Nigerian Banks that have found a new vocabulary in their dictum are not helping matters as their collective annual trillion profit declaration over the years have not in any way impacted positively on the non-oil sub – sector of the economy."

Back to Top
Post Your Feedback