NECA seeks better approach to boost economy

The Nigeria Employers’ Consultative Association has said that Nigeria’s economy currently hangs on the precipice and will require a holistic approach to put it back on course.

The Director-General of NECA, Mr. Wale Oyerinde, noted that the economy was plagued by various challenges.

He said, “With dire combination of spiraling inflation, rising energy cost (aviation fuel, diesel, etc.), scarcity of forex, dwindling value of the Naira, an almost comatose aviation sector, stuttering education system, rising debt, depleting foreign reserve and rising fuel subsidy expenses among others, which threatens to lay bare the country’s economy, there is no better time for government to reappraise current economic policies and deepen its engagement with the Organised Private Sector. While the government’s effort to salvage the economy is commendable, there is, however, a need for a more holistic approach to resuscitate the stuttering economy.”

Speaking further, the NECA boss noted that “being dependent on Crude oil for about 90% of its foreign exchange earnings and 80% of its budgetary revenues, Nigeria has always lived dangerously on the precipice, with a major chunk of its revenue dependent on the complexities of global Crude demand and supply.”

According to Oyerinde, a dangerous blend of self-destructive tendencies, insecurity, fiscal and monetary policy inconsistencies had also conspired to make the situation worse.

Oyerinde noted that while revenue continued to shrink, the nation had inevitably dug its feet deeper into debt. He recalled that at different times over the past few years, various international bodies, including the World Bank, International Monetary Fund and the World Trade Organisation, had warned about the excessive nature of the country’s borrowing.

He said that while some stakeholders had canvassed that the revenue to GDP ratio of the country was healthy, the recent announcement by the Minister of Finance, Budget and National Planning that revenue to debt service ratio was in the negative called for urgent concern.


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