The Nigeria Employers Consultative Association of Nigeria (NECA) chief executive officer and director general, Adewale-Smatt Oyerinde, has expressed concern about the potential failure of many businesses due to unfavourable government policies and a challenging business environment. Oyerinde also opposed the #Endbadgovernance Protest due to the damage to lives and property that accompanied it. He strongly disapproved of the looting that has characterised the protests in various areas of the country. According to him, they appreciate the president’s speech regarding the protest and government actions to ease the suffering of the citizens.
They believe the government must prioritise resolving the several issues affecting the Private Sector to stimulate Economic Growth and progress. Certain regulatory agencies hinder business growth despite the ongoing struggles with high Unemployment and underutilised business capacity. The efforts of the Taiwo Oyedele-led Presidential Committee on Tax and Fiscal Policy Reforms in collaborating with key stakeholders and promoting agreement on tax reforms have been commendable. In contrast, introducing new levies and taxes by some agencies is counterproductive, going against the purpose of the Committee’s establishment.
Dangote Refinery aims to decrease the country’s reliance on fuel imports.
Furthermore, the possibility of Dangote Refinery helping to decrease the country’s reliance on fuel imports was nearly ruined by obstacles in the Oil and Gas sector regulations after the president’s choice to allow the sale of crude to the refinery in local currency. This is concerning considering the amount of time and energy the president has spent trying to attract foreign direct Investors (FDI). He urged Tinubu to convene the protest organisers for a discussion to devise effective solutions for the ongoing protest.
He highlighted the importance of temporarily suspending the sugar tax for the food and beverage industry to support stability and enhance contributions towards Food Security initiatives. He emphasised the significance of maintaining the crude oil supply to the Dangote refinery per the president’s directive to lessen fuel imports. He further encouraged government intervention to control increasing interest and Inflation rates and manage the fluctuations in foreign exchange. He observed that these actions are essential for unleashing the capabilities of established companies and accelerating the necessary economic expansion.
SMEs are essential for promoting national economic growth.
Nevertheless, NECA has raised especially troubling concerns for small and medium enterprises (SMEs), which are the foundation of the nation’s economy. SMEs are essential for promoting economic growth by creating jobs, promoting various industries, and helping to alleviate poverty. These small businesses are affected by an unfavourable business environment, which includes inconsistent policies, high taxation, and inflation. Many SMEs are currently facing challenges in staying afloat, and additional closures could result in several layoffs, worsening the already existing issue of high unemployment rates and hindering the nation’s economic growth.
Meanwhile, the continued existence of these challenges may hinder the country’s economic growth in the long run. Investors’ interest in foreign direct Investment could decrease due to the uncertain and volatile conditions of the present market. The country could face the threat of economic stagnation due to declining foreign direct investment, rising unemployment rates, and businesses operating below total capacity. The potential consequences of this situation may affect the nation’s progress towards Sustainable Development and Poverty alleviation, increasing the economic disparity between the nation and other developing regions.
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In order to tackle these problems effectively, the government must take into account evidence-based policy recommendations. For instance, introducing tax incentives and reducing regulatory burdens for SMEs could stimulate growth and innovation. Nigeria can improve its business environment by implementing policies that are favourable to businesses. Furthermore, by enacting measures to stabilise the exchange rate and curb inflation, businesses can experience a significant boost, enabling them to prosper and play a valuable role in advancing the country’s economy.