Employers of labour in Nigeria, under the auspices of the Nigeria Employers’ Consultative Association (NECA), have called on the federal government to end petrol subsidy payments and also curb the theft of crude oil in the country.
This, they said, had become necessary to prevent the economy from total collapse.
This was the position of a majority of speakers at a NECA CEO Discourse.
They argued that if the government does not resolve these issues before the next administration takes over, the economic crisis that would bedevil the country would not be easily curtailed.
Speaking on ‘Monetary and Fiscal Policy Challenges: Survival Options for Businesses,’ at the event, Managing Director of BusinessDay, Dr. Ogho Okiti, said with Nigeria losing about $2 billion to oil theft monthly, there was an urgent need for the country to deal with it fully.
He said with the uncertain economic and financial environment Nigeria is faced with today, it was important and critical that businesses, individuals, and the government align to deal with the current existential threats.
“We must close the country down to deal with it. If we don’t deal with it, I don’t know what will happen in the coming months. It is not just by consuming N8 trillion just like that. Moreso, we are not just consuming but borrowing to consume,” he said.
Noting that economies grow by incentives, he said at the moment, Nigeria is not incentivised enough to produce but incentivising to consume, adding that production must be prioritised.
Okiti, while advocating the right economic policies, said it is until when Nigeria’s growth rate peaks significantly at nine to 10 percent, that is when it could deal with income growth and poverty reduction.
Fiscal Policy Partner and Africa Tax Leader, PwC, Nigeria, Taiwo Oyedele, also said Nigeria’s economy is facing significant headwinds and not enough tailwinds.
Giving some key challenges in the monetary and fiscal space, he said Nigeria’s problems should be addressed through policies and not throwing money at problems.
On how businesses could thrive despite the numerous challenges bedevilling the country, Oyedele, highlighted some sustainability options, like having the right knowledge, seeking professional advice, and having a long-term perspective and advocacy as a way forward.
President of NECA, Taiwo Adeniyi, who lamented how some government agencies slow down private sector operations through policies, said the organised private sector will continue to deepen its engagements with the government for businesses’ survival.
