BY VICTOR AHIUMA-YOUNG

PRIVATE sector employers in the country have warned that the high rate of policy reversals and summersaults by the Federal Government is detrimental to the growth of the economy.

Under the aegis of Nigeria Employers’ Consultative Association, NECA, the employers challenged government to set target for itself on social issues such as unemployment and quality of life as part of mechanism for assessing the performance of the economy.

At its 54th Annual General Meeting, AGM, in Lagos, NECA’s President, Chief Richard Uche, asked government to adopt as its benchmark the United Nations Development Programme, UNDP’s, annual publication on ‘Delivering on Commitment’ so that the country can find out how it has been able to improve on its ratings on yearly basis.

He cited the case of the unbanning of the importation of textile products, arguing that government should be wary of the employment implication of its action in an environment where unemployment had become one of the biggest social challenges.

He said, “As you well know, good stable policies and strong institutions are crucial elements of an enabling environment, which is necessary for the thriving and prosperity of the economy.

Sadly, good policies, when they are enacted, are not followed to conclusion. The rate of policy summersault and reversal by the government is detrimental to the growth of the economy.”

Reviewing the performance of the economy in the year 2010, Mr. Uche noted that the business environment had been quite challenging for employers in view of the myriads of environment-related problems that companies had to grapple with.

He said, “Most organizations in the private sector have been compelled to continue to be ‘de facto’ government of their own by generating their own power, providing their own security and sometimes involved in the capital intensive projects of repairing roads. All these, he noted has added to the cost doing business in the country.

“Notwithstanding the subsidies and bail-out funds earmarked for the textile, aviation, agricultural and other industries, the NECA President lamented that there are challenges faced by organizations wishing to access these funds noting that government’s efforts though commendable seemed to have been frustrated by bureaucratic bottleneck.

“It would be noted that beyond all expectations and in spite of the seven-point agenda, the economy did not fare significantly better than 2009.

Inflation still remained at double-digit, even with conflicting data from various governmental agencies.

The fortune of the engine of the economy- the private sector, was dwindling as there was no significant increase in the contribution of the real sector to the Gross Domestic Product (GDP).

“The Federal Government’s promise to make 6,000mw of electricity available in the country seems more realistic with the progress made in the settlement and unbundling of the Power Holding Company of Nigeria (PHCN).

The milestone made in the banking industry which might lead to further mergers and acquisitions could be the tonic needed for stronger financial institutions that could serve as the back-bone for industrialization.”