NECA advises FG to review its fiscal and monetary policies.

Ibekimi Oriamaja Reports

The Nigeria Employers’ Consultative Association (NECA) has encouraged the Federal Government to reassess its fiscal and monetary policies in light of the nation’s myriad issues.

In a statement issued on Saturday in Lagos, its Director-General, Mr. Wale Oyerinde, made the call.

Oyerinde asserted that the ineffectiveness of the policies was due to either internal inconsistencies or intentional outside interference.

He asserted that a contributing factor may be the lack of proper consultation during its conception and implementation.

While monetary policies aim to re-ignite the economy through various interventions, fiscal policies frequently cause bottlenecks in the productive sector.

“They do this by passing extra taxes and levies, such the Excise Duty on Carbonated Beverages, the Telecommunication Excise Tax, and the NYSC Levy, among many others.

He contends that the implementation of these levies, taxes, and other anti-enterprise regulations will drastically alter citizens’ spending habits.

He claims that because of the multiplier effects, enterprises may not use all of their potential and the macroeconomic position of the country may worsen.

He asserted that the most recent Abuja Employers’ Summit resulted in some important conclusions and suggestions.

He advised the administration to consider these as potential alternatives to the current course of action.

To decrease the propensity for inconsistency, Oyerinde contends that rigorous alignment between monetary and fiscal policies is urgently required.

“Additionally, a clear and objective framework should be built with the business community’s active involvement in order to consistently evaluate the impact and effect of laws and policies.

“Change unsuccessful ones and formulate new ones,” he said.

The Central Bank of Nigeria’s Micro, Small, and Medium Enterprises Development Fund was lauded by the Director-General (MSMEDF).

In order to strengthen the implementation and allocation process’ credibility, effectiveness, and assurance of stringent monitoring, he urged Nigeria’s organized private sector to participate.