Nigeria Employers' Consultative Association, NECA, has urged the Federal Government to urgently address the myriads of economic contradictions strangulating the private sector to enable the economy open up and return to the path of rapid growth.
Reacting to the President's nationwide address in response to the ongoing #End hunger protest, the Director-General/Chief Executive of NECA, Mr. Adewale-Smatt Oyerinde contended 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 the first quarter, H1, 2024 calls for urgent action".
He said "Following the protests and the national address by the President Bola Tinubu, urging protesters to sheath their swords, the Nigeria Employers' Consultative Association, NECA, has joined the President to urge the protesters to embrace dialogue, while also requesting Government to urgently address the seeming economic contradictions that are strangulating the Organized Private Sector and stopping it from fulfilling its role as the engine of development."
Decrying the unfortunate looting that has characterized the protest in some parts of the nation, Oyerinde said "While we 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."
Sharing some of the contradictions, the NECA Director-General informed 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, some agencies continue 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. This is especially worrisome given the significant time and effort the President has invested in wooing Foreign Direct Investors.
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"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.
"We urge urgent action by the Government to save the Real sector 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. Some of the interventions that should be prioritized among others should include issuing strict directives to regulatory agencies to prioritize regulation over the current seeming unquenchable thirst to impose penalties on already struggling businesses.
"While we are not against pro-growth regulations, we are concerned at the current arbitrariness that seems to pervade the regulatory space, driven by the need for revenue. We call 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.
"We equally demand the sustenance of the supply of crude oil to the Dangote refinery as directed by the President to reduce the nation's propensity to import fuel. Most importantly, we urge the curtailing of the rising interest and inflation rates, while also addressing ongoing Foreign Exchange, FOREX, volatility. All these measures, no doubt, are crucial to unlocking the potential of Organized Businesses and fast track the much needed economic growth."
