The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government to implement measures that would enhance the business environment within the country.
The association believes that such actions would pave the way for businesses to regain a level of stability conducive to fostering decent employment opportunities.
This call to action was contained in a statement released on Tuesday by NECA’s Director-General, Mr Adewale-Smatt Oyerinde. He expressed concern over the escalating unemployment rate in the country, warning that the current trend could signal an impending unemployment crisis, especially given the prevailing harsh economic conditions.
“The government should end the monetary rationing which is going on at the moment and ensure that the optimum quantity of money needed to stabilise the economy is in circulation," he said.
Mr Oyerinde also called for a review and moderation of the fuel subsidy removal, describing subsidies as tools for socio-economic stability and growth. He noted that various forms of subsidies exist, such as unemployment allowance, free medicare, social security allowance, old age allowance, and child upkeep allowance. However, he pointed out that in Nigeria, only the fuel subsidy is currently in place.
The Director-General further advocated for a review of the floating exchange rate regime as a measure to prevent a potential monetary collapse. He also urged the government to reconsider its position on the tax credit for infrastructure, particularly concerning road constructions undertaken by the private sector.
“Also, it should review its tax projections from the private sector, particularly in the present condition," Oyerinde advised. He cautioned that high taxes do not benefit anyone, including the government. He warned that the current trend of increasing taxes has the potential to crowd out a significant number of businesses in the country.