Wednesday, 17 July 2024 04:50

Editorial: Urgent need for course correction as Nigeria’s private sector cries out loud

Rate this item
(0 votes)

The consensus among Nigeria’s private sector is clear and damning: President Bola Tinubu’s economic policies are decimating businesses, causing widespread job losses, exacerbating poverty, and deepening national misery. The Nigeria Employers’ Consultative Association (NECA), Manufacturers Association of Nigeria (MAN), and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) have all sounded the alarm. It is imperative that the government change course before it is too late.

The policy shifts enacted in 2023, particularly the removal of fuel subsidies and the liberalization of the exchange rate, have created market distortions and increased the cost of doing business. These changes, implemented without adequate measures to mitigate their negative impacts, have led to a contraction in business activities and left many private enterprises struggling for survival. Taiwo Adeniyi, President of NECA, has lamented that the economy's private businesses are now operating on sheer determination and doggedness, rather than any conducive policy environment.

The high cost of doing business in Nigeria has been exacerbated by the depreciation of the naira, which has skyrocketed from N460 to N1600 per US dollar in the official market. This has significantly raised import costs and depleted the working capital of businesses. The upward review of Customs rates for cargo clearance has further strained businesses, driving up production costs and commodity prices while reducing household purchasing power. These pressures are stifling private businesses and contributing to a general economic contraction.

Moreover, the proliferation of unjustifiable regulations and taxes is creating an even more hostile environment for businesses. NECA has pointed out that recent regulations, such as the temporary ban on small packs of alcoholic beverages by NAFDAC, have caused significant anxiety and disruption. These regulations often appear to be implemented without proper consultation with private sector stakeholders, adding to the unpredictability and instability that businesses must navigate.

The manufacturing sector, represented by MAN, has highlighted the additional challenges of foreign exchange volatility, inadequate power supply, and high inflation. These issues have driven up production and distribution costs by over 20 percent in the first quarter of 2024 alone. The government’s harsh economic reforms have compounded these longstanding problems, leading to a further decline in productivity and economic performance.

The NACCIMA has also raised concerns about the rising cost of doing business and the aggressive pursuit of tax policies. With interest rates soaring, many businesses, especially MSMEs, are unable to secure the financing they need to operate and grow. This, coupled with decreasing production and rising unemployment, creates a vicious cycle of economic decline and social instability.

The Nigeria Labour Congress (NLC) has joined the chorus of criticism, warning that the government's failure to address these issues could lead to widespread unrest. Joe Ajaero, President of the NLC, has emphasized the need for fair wages to boost worker productivity and stimulate economic growth. The call for a national minimum wage that can lift workers out of poverty is not just a matter of social justice but an economic necessity.

In light of these multifaceted crises, it is clear that the current economic policies are unsustainable. The government must embark on a more balanced approach that supports domestic production, ensures fair and stable exchange rates, and provides a conducive environment for businesses to thrive. Regulatory and tax policies must be crafted in close consultation with the private sector to avoid unnecessary disruptions and foster a climate of stability and growth.

Failure to act decisively and change course will only deepen Nigeria’s economic woes and exacerbate social tensions. It is time for President Bola Tinubu and his administration to listen to the voices of the private sector, labour organizations, and economic experts. The future of Nigeria’s economy, and the well-being of its citizens, depend on it.

November 23, 2024

NNPC not delivering quantity of crude oil agreed on, Dangote refinery says

The federal government's plan to sell crude priced in the local currency is faltering, with…
November 22, 2024

Tinubu’s borrowing spree retuning Nigeria back into debt peonage - Atiku

Former Vice President Atiku Abubakar has criticized the President Bola Tinubu-led administration for the increasing…
November 23, 2024

Do these 3 things to feel happier today—they take less than 10 minutes

Prioritizing your joy can feel like an abstract assignment that, frankly, many of us don't…
November 16, 2024

Influencer eats pig feed in extreme attempt to save money

Popular Douyin streamer Kong Yufeng recently sparked controversy in China by eating pig feed on…
November 22, 2024

FG excited as pro-Biafra agitator Simon Ekpa arrested in Finland on terrorism charges

Simon Ekpa, the controversial leader of the pro-Biafra faction Autopilot, was arrested by Finnish authorities…
November 23, 2024

What to know after Day 1003 of Russia-Ukraine war

RUSSIAN PERSPECTIVE Putin announces mass production of Oreshnik missiles Russian President Vladimir Putin confirmed on…
November 21, 2024

Nigeria comes top in instant payment system inclusivity index in Africa

Nigeria’s instant payment system is projected to advance to the maturity inclusion spectrum ahead of…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.