University don advocates tax relief for MSMEs to boost Nigerian economy
An Accounting Professor, Kabiru Isa Dandago has advocated the removal of taxes on Micro, Small, and Medium Enterprises (MSMEs) to foster their growth and bolster Nigeria’s economy.
Dandago, a senior lecturer with Bayero University Kano (BUK) expressed these views on Saturday at an event hosted by the Nigerian Institute of Management Kano State chapter.
He emphasized that MSMEs are significant producers of goods and services, which are mostly responsible for employment opportunities and address various social issues, including reduction in insecurity.
He, however, pointed out that heavy taxation is detrimental to their survival and growth. He called on the government to either eliminate or reduce taxes to ensure the sustainability of these businesses.
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“In Nigeria, MSMEs often face neglect and are not sufficiently supported, possibly due to the perceived high risks associated with investing in their activities,” said Dandago.
He stressed the importance of professional managers in identifying and managing these risks to enable MSMEs to secure more capital and thrive.
He also highlighted the government’s interventions, such as the Small and Medium-Scale Enterprise Development Fund from the Central Bank of Nigeria (CBN), which allocates billions of Naira across the states. However, he argued that the funds are insufficient and urged for more substantial financial support, provided that the risks are properly accessed and managed to prevent misuse of the funds.
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Alhaji Ado Rabo Shuaibu, Chairman of the Nigerian Institute of Management, Kano Chapter, mentioned that the lecture was part of a Northwest zonal event covering Kano, Jigawa, Katsina, Sokoto, Zamfara, and Kebbi.
SolaceBase reports that the annual tradition aims to address public issues by inviting professionals to share their insights.
Shuaibu expressed hope that the knowledge shared would be beneficial, especially for the youth.
The theme of this year’s lecture was “Risk Management in Growing MSMEs,” with members from the zone participating virtually.
In his remarks, the Northwest Zonal Chairman of NIM, Professor Abubakar S. Garba, spoke about the economic instability affecting the country and the challenges faced by micro-finance institutions in providing support to MSMEs.
He noted that the current economic condition makes it difficult for micro-finance institutions to recover loans, thereby increasing their risk.
Professor Garba called for more support for the MSME sector, which he described as the ‘engine room’ of the economy, to be bolstered by micro-financial institutions for a more significant impact.
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