The Nigeria Employers’ Consultative Association NECA Warns of Continued Economic outlook for the nation in the next six months. The umbrella organization for employers in the country anticipates little to no significant growth during this period, citing numerous challenges that have plagued the economy.
In an exclusive interview with Vanguard, NECA’s Director-General, Adewale-Smart Oyerinde, highlighted the difficulties faced by businesses in 2023, emphasizing the impact of COVID-19 and self-inflicted challenges. He pointed to tax issues, policy inconsistency, and regulatory and legislative interference as key hurdles faced by organized businesses.
Oyerinde expressed concerns about the removal of the fuel subsidy and the harmonization of the foreign exchange, both contributing to increased costs of doing business and living. The drastic depreciation of the naira and the scarcity of forex, especially for businesses reliant on imports, added to the complexities faced by organized businesses.
NECA Warns of Continued Economic, despite the gloomy assessment, NECA acknowledged the current administration’s positive steps in discontinuing certain patterns, such as substantial support for the naira and the fuel subsidy, aligning fiscal and monetary policies, and addressing recklessness witnessed in the past. Oyerinde expressed hope that these measures would yield positive results by the end of 2024, reducing the high rate of business exits and unemployment.
Looking ahead, NECA anticipates a challenging first and second quarter for 2024. However, they suggest that the end of the second quarter to the end of the year might be more favorable. Oyerinde highlighted potential positive signals, including a reported increase in dollar inflow, expectations from the Taiwo Oyedele Presidential Committee on Fiscal and Monetary Reforms, and developments in the oil sector with refineries coming online.
The Director-General emphasized the need for conscientious implementation of reforms, private sector engagement, and citizen consensus. NECA believes that with continuous advocacy and engagement by the private sector, 2024 could become a foundational year for anticipated prosperity and economic growth. However, Oyerinde cautioned that the actual context of implementation could influence whether these conjectures and patterns translate into positive outcomes. The private sector remains optimistic but vigilant as they navigate the economic landscape in the coming year.
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