In light of the nation's numerous problems, the Federal Government has been advised by the Nigeria Employers' Consultative Association (NECA) to review its fiscal and monetary policies.
The call was made by its Director-General, Mr. Wale Oyerinde, in a statement released on Saturday in Lagos.
Oyerinde claimed that the policies' limited effectiveness was a result of either inherent contradictions or deliberate sabotage by outside parties.
He claimed that inadequate consultation throughout its development and application may possibly be a contributing cause.
“While the monetary policies aim to reflate the economy through the various interventions, the fiscal policies tend to create bottleneck for the productive sector.
“This they do by introducing new taxes and levies, such as Telecommunication Excise Tax, Excise Duty on carbonated drinks, Beverage’s tax, NYSC Levy among many others.
“The introduction of these taxes and levies and other anti-enterprise regulations, to a large extent, will further hamper the consumption pattern of the citizens,” he said..
According to him, they can also reduce capacity utilisation of enterprises and worsen the macroeconomic situation of the country due to the multiplier effects.
He said that the recently held Employers’ Summit in Abuja came up with some key conclusions and recommendations.
These, he said, could serve as alternative policy action for government to consider.
Oyerinde said that as a matter of urgency, there should be deliberate alignment between monetary and fiscal policies to reduce the contradictory tendencies.
“Also, a deliberate and independent mechanism with the active involvement of the private sector should be put in place to regularly gauge the effect and impact of policies and regulations.
“Ineffective ones should be changed and new ones formulated, “ he said.
The Director-General lauded the Central Bank of Nigeria’s Micro, Small and Medium Enterprises Development Fund (MSMEDF).
“We urge that the implementation and allocation process should involve the Organised Private Sector of Nigeria in order to enhance its credibility, effectiveness and ensure strict monitoring,” he said.