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LCCI Reveals How 83% Of Lagos Entrepreneurs Plans To Survive Covid-19 Impact -

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Business

LCCI Reveals How 83% of Lagos Entrepreneurs Plans to Survive Covid-19 Impact

By Israel Bolaji

Majority eighty-three (83%) of business owners plan to cut down salaries, downsize workforce or a combination of both in Lagos in order to survive the strain on businesses in the wake of Coronavirus pandemic.

This finding was revealed by the Lagos Chamber of Commerce and Industry LCCI based on its fresh survey on the impact of COVID 19 lockdown on businesses as well as interactions with major stakeholders in the private sector.

The LCCI findings also showed that demand has reduced significantly with revenue severely affected in the wake of Covid-19, according to LCCI President, Mrs Toki Mabogunje on Tuesday during a press conference in Lagos.

Mabogunje said, ‘in view of this development businesses therefore request adequate stimulus and intervention to preserve investments and save jobs. More than half (54%) of business owners want banks to reduce interest rate and give moratorium on loans, while 29 percent want reduction in tax liabilities, while 17 percent want waivers on import duties and demurrages.’

She therefore called on the policymakers and the organized private sector to come together to rescue the economy from collapse at this critical time.

LCCI therefore proposed some support measures for business community for government’s considerations, including a year tax break for healthcare & pharmaceutical companies, airlines, manufacturers, agro-processors, SMEs and hospitality players.

Others are temporary suspension of 50 percent increase in VAT rate till year end, P.A.Y.E suspension for the next six months to boost purchasing power and aggregate demand, thereby stimulating the economy.

Agro-processing companies should enjoy import waivers for the next one year. This is critical to support food security and agricultural supplies. Commercial banks are implored to offer reprieve to businesses and corporates indebted to them. The reprieve could be in form of loan moratorium and restructuring.

We urge the CBN to review the cash reserve ratio downwards to 20 percent from the current 27.5 percent, to enable commercial banks have more liquidity to support businesses.

In the aviation industry, we recommend some support towards augmenting insurance premiums which are dollar-denominated as cover were mostly underwritten abroad due to lack of local capacity as well as support to pay for operational cost including international lease rental on grounded aircraft and maintenance (C& D-checks), with full implementation of the Executive Order on Removal of VAT from Air Transportation.

TheConscience

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