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By Bimbola Oyesola, [email protected]
Against the backdrop of the nationwide protest, the Nigeria Employers’ Consultative Association (NECA) has tasked the Federal Government to urgently address the seeming economic contradictions that are strangulating the organised private sector (OPS).
According to NECA, these contradictions are stopping OPS from “fulfilling its role as the engine of development.”
Director-general of the Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde noted that while NECA commend the President for addressing the nation on the protest and the many on-going efforts of the government to address the pains of Nigerians, “we urge, most urgently that Government should also give urgent attention to the myriads of contradictions bedeviling the private sector, to enable the economy open up and return to the path of rapid growth.”
The employers body equally urged the protesters to embrace dialogue rather than violence.
Sharing some of the contradictions, the NECA DG said that while the nation grapple with high unemployment rate and low business capacity utilization, some regulatory agencies are still creating bottlenecks for business growth.
“It is obvious to all that the Taiwo Oyedele led Presidential Committee on Tax and Fiscal Policy Reforms have done creditably well in engaging critical stakeholders and building consensus on the tax reforms,” he stated.
He however lamented that some agencies have continued to introduce new levies and other forms of taxes, negating the one of the main reason for the establishment of the Presidential Committee.
“The expectations that Dangote Refinery will contribute to reducing the nation’s propensity for fuel importation was almost dashed by regulatory bottlenecks in the Oil and Gas industry, thanks to the Presidential decision that paved the way for sale of crude to the Dangote refinery in Naira,” he said.
Oyerinde said this is especially worrisome given the significant time and effort the President has invested in wooing Foreign Direct Investors.
Speaking further, the NECA boss expressed that with the current rate at which businesses are declaring losses, especially in the real sector, the nation might be in for another round of business shutdown.
“A combined loss of over N533 billion by just four businesses in the sector in H1, 2024 calls for urgent action,” said Oyerinde.
While urging urgent action from the government to save the Real sector, Oyerinde noted, “in the midst of multi-dimensional challenges being faced by the economy, we urge the Government to address the ‘low hanging fruit’ solutions to get the real sector back on track.
He listed interventions to be given top consideration among others to include issuing strict directives to regulatory agencies to prioritize regulation over the current seeming unquenchable thirst to impose penalties on already struggling businesses.
He opined that while NECA is not against pro-growth regulations, “we are concerned at the current arbitrary that seems to pervade the regulatory space, driven by the need for revenue.
He called for the suspension of the sugar tax for the Food and Beverage (sugar sub-sector) to allow the sector to stabilize and contribute maximally to current efforts at achieving food security.
The NECA Director General also charged the government to sustain the supply of crude oil to the Dangote refinery as directed by the President to reduce the nation’s reliance on fuel importation.
Others he said is the curtailment of the rising interest and inflation rates, while also addressing ongoing FOREX volatility.
“All these measures, no doubt, are crucial to unlocking the potential of Organized Businesses and fast track the much needed economic growth,” he stressed.
