The Chief Executive Officer, Nigerian Economic Summit Group, Mr. Laoye Jaiyeola has implore state government to improve on their investments and create enabling environment for businesses to thrive to attract investors in the country.
Jaiyeola while speaking in Abuja on Tuesday at a high-level private sector dialogue with the conference of speakers of state legislatures noted that the solution to myrad of nigeria’s economic problem is lack of Investment and an enabling environment for businesses to thrive.
“The solution is that what we need is to bring investment, there are private sector people in Nigeria today, but are afraid to invest there money in the country, so our foreigners are not bringing their money, Nigerians are taking there money out, so how do we give that confidence that will make private sector keep their money in the country”.
According to Jaiyeola, the state of the economy is not where we want it to be we having had three recessions in the last 10 years as the economy is still on the path of recovery and as such all hands must be on deck so as to grow the economy.
Jaiyeola explained that businesses will go to where the environment is conducive to thrive as the private sector account for more than 75% of the economy growth therefore, should be encouraged to create more jobs, but opined that the environment to facilitate that depends on what government does at state or local government level.
Chairman, NESG, Mr. Asua Ighodalo, corroborating, stated that days of going cap in hand to the federal government for FAAC for funds and fund request are far gone, the resources of the federal government are tight and dwindling, revenues haven’t gone up nationwide, so states has to become ingenious to where they will find revenue and resources.
“In other to achieve this, states must make themselves attractive to investment to businesses, so that they be able to tax those businesses and the multiplying effect of those businesses in there state will be felt”.
Ighodalo explained that each state have to start looking inward on areas of comparative advantage and in this circumstances, and should enact laws that will allow them to take advantage of these areas where they have comparative advantage.
He added that states should concentrate on how to encourage investments into their state, make themselves attractive and bank on what they have advantage on and how to make them critically important and positive for their state.
“States can make life easier and reap the benefits of investment, investments now are moving to states that are more investment-attractive”.
Speaking on tax collection, he said “there are certain things we have capacity to do in terms of land laws, multiplicity of taxes, each should make taxe easy for investors in their state, they should centralize tax collection both at the local and state and later distribute accordingly”.
Chairman Conference of Speakers of State Legislatures, Rt. Hon. Abubakar Suleiman on his part stated that the meeting is an acceptance with NESG to work together come up with laws from the state assemblies that will improve the economy.
Suleiman however stated that autonomy will positively affect the economy while laws will be enacted on multiple taxation and issues relating to ease of doing
“Autonomy will positively affect the economy of the state and I can assure that we are on top of the situation that the conference of speakers, we have done this before and we are going to do this but we are monitoring the situation around the country and we are definitely going to improve to achieve more progress.
“On ease on doing business and multiple taxation, we are going to look at this areas and come up with relevant laws that will confront issues of multiple taxation, we are going to do something about this”.