The Nigeria Employers’ Consultative Association (NECA) has urged the government to adopt a more pragmatic approach in implementing economic policies to prevent job losses and business closures.
Regulatory Bodies Must Align with Economic Recovery Goals
Speaking on Business Nigeria on TVC, NECA’s Director-General, Mr. Adewale Smatt-Oyerinde, warned that poorly executed policies could stifle economic growth and undermine job creation. He emphasized the need for regulatory bodies to align with the government’s broader economic recovery plan, citing recent policy adjustments, such as the suspension of the 4% Free on Board (FOB) levy and the 50% tariff reduction, as steps in the right direction.
Impact of Excessive Levies on Businesses and Consumers
Smatt-Oyerinde argued that excessive levies and compliance costs ultimately burden consumers and slow economic progress. He urged policymakers to reassess policies that may hinder private-sector growth.
“While laws are important, we must consider their timing and impact. Implementing certain policies when businesses are already struggling, stock levels are rising, and jobs are being lost is counterproductive,” he stated. “The law should facilitate business growth, not stifle it. If the FOB levy and tariff reductions were possible, then other regulatory measures should follow suit to protect businesses and the economy.”
Call for Sustainable Economic Policies
He criticized the short-sighted approach of using excessive taxation as a revenue-generation strategy, warning that it could lead to economic downturns.
“Every additional financial burden on businesses translates to job losses, higher consumer prices, and reduced disposable income. We need policies that encourage business expansion and economic recovery, not ones that suffocate growth,” he concluded.
NECA Pushes for an Enabling Business Environment
NECA urged the government to focus on creating an enabling business environment, stressing that sustainable policies are crucial for economic stability and long-term development.
