FMCG MARKET IN KADUNA :GROUP URGES EL-RUFAI TO REDUCE FISCAL BURDEN

By IHIDERO Victor Osae, Kaduna 

Premised on the need to enhance the business environment in Kaduna State, the Kaduna Chamber of Commerce, Industries, Mines and Agriculture (KADCCIMA) and Nigeria’s Employers Consultative Association (NECA), with support from ENABLE2, has urged the Kaduna State Government to reduce the multiple fiscal burdens placed on businesses in the state.The KADCCIMA-NECA coalition, in a public-private dialogue meeting with the Kaduna State Government on Tuesday in Kaduna, noted that Fast Moving Consumer Goods (FMCG) sector contributes to a market capitalization of about 20 billion Naira in Kaduna state; a figure that equates almost 11% of the state’s 2016 budget of N172.32 billion. However, the coalition lamented the state of the multiple fiscal burdens, in the form of unfair taxes, which according to their research, cost FMCG operators in Kaduna state 30% sales lose between 2010 and 2015 and have thrown several small and medium businesses out of the market.

Whilst acknowledging the efforts of Mallam El-Rufai’s led government to boosting the business environment in the state through the implementation of different entrepreneurial programmes, NECA researcher, Rilwan Aderinto, in his presentation of the situation of FMCG in Kaduna, stated that “the cost of business have increased by 68% between 2010 and 2015, while the average growth rate for small and medium businesses is at 12%. 

“Starting up new business in Kaduna is challenging. The length of time it takes to set up a business by FMCGs in the State increased from roughly by 12 months in 2010 to to 13 months in 2015 on average. However, setting up a retail outlet like kiosk or roadside stall for FMCG would take 6months.

“What makes Kaduna State standout is the size of the fiscal burden that it imposes on FMCGs in the state. Not only is the absolute level of fiscal size as a share of the revenue and profits of FMCGs in the State high, these businesses are exposed to payment of a very high number of taxes”

Commenting on the findings of FMCG in the state, the Executive Governor of Kaduna State, represented by xxxxxxxxxx noted that the state cannot be said to be encouraging multiple tax system considering the fact that the state reduced multiple taxation from over eight to five on coming into office. He stated that the findings did not reflect the current situation of FMCG in Kaduna state saying “We in Kaduna State appreciate the roles played by Fast Moving Consumable Good in employment creation and in making available to the millions of our people goods that enhance their living standards.

“While we agree that FCMG companies are profit centres and the cost of business is rising, care must be taken not to alienate many of our citizens who may be facing difficulties by adequately exploring a balance between profits and customer utility driven by the affordability of products.

“As a business and Investment friendly State, the Government and people of Kaduna State will always welcome and promote such activities. We will always facilitate businesses and investments and we look forward to having most FMCG companies setting up manufacturing industries in our State as to promote our industrialization drive, diversify our economic base and provide job opportunities for our citizens” he said.

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