The Nigeria Employers’ Consultative Association, NECA, has urged the Federal Government to reappraise its monetary and fiscal policies to address the multifaceted challenges confronting the nation.
Director-General, NECA, Mr. Wale-Smatt Oyerinde, while speaking in Abuja recently, described the current economic policies as ineffective within the context of the current challenges.
Oyerinde said a deliberate and transparent process of evaluating economic policies should be put in place, with the Organized Private Sector, who were critical stakeholders, at the centre.
According to him, some of the initiatives of the apex bank had the capacity to stimulate and drive the economy towards the path of sustained growth if the impediments were removed.
These initiatives and policies, Oyerinde said, comprised the exclusion and prohibition of about 47 items from eligibility to access FX on 23rd June 2015 and the introduction of the e-Form ‘A” for Forex Online in July, 2021.
Noting an obvious misalignment of the fiscal and monetary policies of the government, the NECA DG said it was urgent and important for the nation’s monetary and fiscal authorities to close ranks to reduce the contradictory tendencies of their policies for the good of the nation.
He said, “As a matter of urgency, there should be deliberate alignment of Monetary and Fiscal Policies. The process should involve the Organized Private Sector of Nigeria (OPSN) in order to enhance its credibility and effectiveness, while strict monitoring and enforcement should be ensured.”
The NECA DG further stated that while the monetary policies aimed to reflate the economy through various interventions, the fiscal policies tended to stifle the productive sector by frequently introducing new taxes and levies. Examples, according to him, included the recent telecommunication excise tax, excise duty on carbonated drinks, beverage’s tax and the NYSC levy.
He said the introduction of these taxes and levies was an unfortunate addition to other anti-enterprise regulations.
He noted that the multiplier effects of the taxes would further hamper the purchasing power of the citizens, reduce capacity utilization of enterprises and worsen the macroeconomic indices in the country.
