Stories by Victor Ahiuma-Young

As Nigerians eagerly look forward to a new government in May later this year, there are indications that the current socio-economic realities may not change for the better soon.

In fact, the umbrella body for employers in the country; the Nigeria Employers’ Consultative Association, NECA, is warning that businesses are likely to face more challenges this 2023.

In a chat with Vanguard Newspapers, NECA’s Director General, Adewale-Smatt Oyerinde, while setting agenda for the incoming government, among others, insists that the incoming government must demonstrate strong political will and nationalistic zeal to not only unravel the misery surrounding the fuel subsidy on which over N4 trillion was expended in 2022, but also name and prosecute those found to have deprived the nation of huge developmental funds.

He said “As we progress into year 2023, it is imperative that the outgoing Government did all within its powers to ensure some level of stability in the Polity. The efforts at reducing oil theft should be stepped up. It is important that the Government should take a second look at the challenges of the multiplicity of taxes and introduction of new ones. It will be counter-productive to continue to increase taxes and invariably burden many businesses out of existence. While we cannot control global events that affect us, we can do well to resolve the many contradictions inherent in our polity.

“The ripple effects of the Russia-Ukraine war will continue to be felt in this 2023, global money tightening will continue with consequential effects on Nigeria and other struggling economies, energy challenges will continue in Europe with Russia weaponizing gas and food supply, the removal of fuel subsidy in Nigeria could trigger protest from organized labour even as the purchasing power of average Nigerians continue to dwindle due to increasing inflation and high unemployment rate. It is also expected that businesses will face more challenges as the quest for sustainability and not competitiveness continues.”

Policy options for incoming govt

“We propose that the incoming government must demonstrate strong political will and nationalistic zeal to not only unravel the misery surrounding the fuel subsidy on which over N4 trillion was expended in 2022, but also name and prosecute those found to have deprived the nation of huge developmental funds. The next government’s priorities should include ensuring macro-economic growth and stability; getting the nation’s refineries to work and removal of the fuel subsidy; ensure a fair and just system of taxation, which must include the harmonization of all taxes across the Federation; alignment of the Fiscal, Monetary and Trade policies to stimulate growth and increase investor’s confidence; review the national security architecture as this will have a ripple effect from a reduction in the loss of lives, high cost of transportation, food inflation among others. 

“It was reported that one of the Electricity Distribution Companies lost over N30Billion to vandalism.; give more attention to trade and non-oil exports as alternative for Foreign Exchange earnings; develop a more robust Monetary Policy to defend and increase the value of the Naira, be deliberate in creating plans to reduce the bourgeoning debt profile; facilitate a more conducive environment for businesses and ensure an all-inclusive growth across all sectors of the economy.

“While it is obvious that the road ahead will not be easy, it is expected that the current Government will refocus its energies at ensuring economic stability and create a foundation for economic renaissance, post May, 2023.

“Structurally, the nation is dealing with a multi-facet economic challenge and lack of competitiveness in our manufacturing industry. As we deepen our participation in the Africa Continental Free Trade Area Agreement (AfCFTA), we cannot but enable the Real sector of the economy to stabilize in order to be able to compete at the African trade market. Not doing so will sound the death knell for Nigerian businesses and expose the economy to dire consequences.

“The incoming government must be bipartisan and decisive in addressing the myriad of challenges that presently stifle the growth of Businesses, and invariably national development. The challenges are huge, but with the right policies and people at the helm of different Ministries, Departments and Agencies, and with close collaboration and partnership with the Organized Private Sector in policy design, implementation and monitoring, these challenges are surmountable.”