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…Reiterates call to stop firms’ exit
By Bimbola Oyesola, [email protected]
Organised private sector (OPS) has tasked the federal government to prioritize the survival of local businesses as the primary step before actively seeking foreign direct investment.
This is even as it reiterated its call for urgent steps to curb the exit of businesses from the country due to operative challenges.
The Nigeria Employers’ Consultative Association (NECA) emphasized the immediate need for decisive measures to halt the ongoing trend of companies divesting from the country.
Director-general of NECA, Adewale-Smatt Oyerinde, said, although government’s disbursement of the N125 billion Presidential Palliative Programme supporting small and medium enterprises (SMEs) and manufacturers deserved commendation, there should be urgent steps taken to address mass exodus of businesses from the country.
“We urge a quick and definitive action to arrest the continuous exit and divestment of legitimate organizations in Nigeria,” he said.
He reasoned that in the last few years, strong brands, both multinational and local brands, have either closed shop or divested fully or partially.
According to him, “these regrettable departures will persistently undermine the Federal Government’s efforts to attract Foreign Direct Investment, rendering its initiatives ineffective.”
He highlighted the probable factors behind these business closures as challenging business landscape, marked by stringent regulatory and legislative activities.
He identified others as insufficient infrastructure, and policy inconsistencies, which he said collectively exacerbates the difficulties faced by businesses.
He added that regulatory bodies tasked with fostering business growth persist in prioritizing revenue generation at the expense of their core mandate, while legislators, in the guise of oversight functions, consistently create impediments for organized businesses, hindering their operations.
“The contradictions and self-disruptive tendencies of many federal and state Institutions can only be imagined, as they negate the efforts of the President to attract Foreign Direct Investment,” he stated.
Oyerinde however, implored the President, as well as the Minister for Finance and the coordinating Minister of the Economy, to prioritize the survival of local businesses as the primary step before actively seeking Foreign Direct Investment.
He advocated for the 2024 Appropriation Bill to address crucial infrastructural requirements conducive to business expansion, laying the groundwork for a prosperous nation.
He also stressed on the need to focus on comprehensive tax reforms as well as address the challenges related to FOREX and exchange rates.
