The Nigeria Employers’ Consultative Association (NECA), the umbrella body for Organised Private Sector has cautioned the Federal Government against plans to use the provisions of sections 38 and 39 of the proposed Finance Bill to further strangulate Businesses in the country.
Dr. Timothy Olawale, Director-General of NECA, in an exclusive interview with our correspondent, stated that “the draft Bill creates a COVID-19 Crisis Intervention Fund which is expected to be utilised to meet COVID-19 related expenditure or other such exigencies. However, it did not provide information on how the fund will be governed or the persons who are qualified to govern/manage the fund”.
He expressed that; “Inasmuch as the Bill cannot be expected to provide an exhaustive list of the purposes to which the funds will be applied, the Bill should define what is meant by “COVID-19 related expenditure” to help to reduce abuse”.
NECA’s Director General lamented that section 39 of the draft Bill which seeks to establish an Unclaimed Dividends Trust Fund as a sub-fund of the COVID-19 Crisis Intervention Fund is unnecessary.
He called on Government to expunge provisions on the Unclaimed Dividends Trust Fund from the Finance Bill 2021, and companies be allowed to manage the unclaimed dividends for and on behalf of its shareholders; and in the best interest of both the company and its shareholders.
