Given the complex issues facing the country, the Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to review its fiscal and monetary policies.
The call was made in a statement released on Saturday in Lagos by its Director-General, Mr. Wale Oyerinde.
According to Oyerinde, the policies’ limited impact was caused by either strategic sabotage by outside parties or intrinsic inconsistency.
He suggested that another contributing reason would be the absence of sufficient consultation during its development and execution.
Fiscal policies frequently result in bottlenecks for the productive sector, whereas monetary policies seek to reflate the economy through a variety of measures.
They accomplish this by enacting additional levies and taxes, such the NYSC Levy, the beverage tax, the excise duty on carbonated drinks, and the telecommunications excise tax, among many others.
He said that the implementation of these taxes, levies, and other anti-enterprise laws would significantly impair citizens’ purchasing habits.
He claims that because of the multiplier effects, they might also lower the capacity utilization of businesses and deteriorate the nation’s macroeconomic status.
He claimed that several important findings and suggestions were made during the most recent Employers’ Summit in Abuja.
He claimed that the administration might take these into consideration as an alternate course of action.
To lessen the contradicting tendencies, Oyerinde stated that intentional alignment between fiscal and monetary policies is urgently needed.
Additionally, a purposeful, independent system that involves the business sector should be established to continuously assess the impact and effect of laws and policies.
“It is important to modify ineffective ones and develop new ones,” he stated.
The Micro, Small and Medium Enterprises Development Fund (MSMEDF) of the Central Bank of Nigeria was praised by the Director-General.
In order to improve its legitimacy, efficacy, and guarantee stringent oversight, he urged that the Nigerian Organized Private Sector be included in the implementation and allocation process.
