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Nigeria’s government is putting its 77 trillion-naira ($100.8 billion) debt burden on manufacturers through high and multiple taxes, local media reported, citing a report by the Manufacturers Association of Nigeria (MAN).
The domino effects of escalating public debt on the manufacturing sector are endless, the association alleged in its first quarter report titled, "Special Focus: MAN at the receiving end of national debt crisis”.
The government is using the manufacturers to generate revenue to repay its debt, The Punch newspaper said, quoting the report.
The association added that members are bearing the brunt of the debt piled up by the government.
Moreover, the manufacturers accused the debt repayment of the depreciation of the naira, stating that external debt service is raising demands for foreign currencies and worsening the forex scarcity for the manufacturing sector.
The country’s debt crisis is not a result of inadequate revenue but its anti-growth to manufacturing taxes as the last resort for checking the debt problem, the report said.
(Editing by Seban Scaria seban.scaria@lseg.com)