NECA advocates holistic approach in tackling economic challenges

To resolve economic challenges bedeviling the country, the Nigeria Employers’ Consultative Association (NECA) has called for a holistic and multi-pronged approach to resuscitating the tottering economy.

Speaking on the state of the economy, Director-General of NECA, Wale Oyerinde, who listed the multiple challenges facing the country vis-a-vis spiraling inflation, rising energy cost, forex scarcity and dwindling value of the Naira, among others, said there was no better time for government to reappraise current economic policies and deepen its engagement with the Organised Private Sector (OPS).

He urged the Federal Government to urgently fix the four national refineries and encourage the development of modular ones as a precursor to total removal of fuel subsidy.

He said the over N5 trillion budgeted for subsidy payment in 2022, an amount larger than the budget for education and agriculture, is unrealistic and unsustainable.

According to him, economic interventions aimed at improving living standards (to stimulate consumption) and enterprise sustainability (to promote job creation) should be implemented.

He said while forex scarcity persists, allocation of the available forex to manufacturing and other productive sectors of the economy should be given priority.

Further making recommendations on how to deal with the multi-facet challenges, the NECA Director-General said a deliberate and economic priority influenced approach and wide consultation with stakeholders should commence.

This, he said, should be with the view of harvesting alternative policy options to re-energise all sectors of the economy.

While the challenges of revenue shortage are acknowledged, he said burdening businesses with new taxes or levies would be counter-productive and self-destructive action.
“Over-burdening already burdened businesses will only lead to business closure and an escalation of job losses with consequential effect on our social and economic stability.

“Government should, in the short-term, widen the tax net, reduce wastage in governance, and focus on economic projects that will stimulate the Nigerian economy and guarantee an enabling environment for businesses to operate. An enabling environment for local businesses will create the platform for new foreign direct investment, which could increase forex inflow into the country,” he said.