The Nigeria Employers’ Consultative Association (NECA) has recommended economic policy options that would restore the tottering Nigerian economy to the path of stable growth.
These options included a stable and highly predictable revenue stream, growth-focused monetary and fiscal policies, a secure and business-friendly environment, and a legal, regulatory and legislative system amongst others.
It also noted that now was the ripe moment for Nigeria to launch a major paradigm shift in its economic philosophy in order to be in a position to contain the adverse impact of the projected global economic recession in 2023, adding that there is a need to design a long-term funding mechanism for tertiary education rather than the call for the increase of TETFUND from the current 2.5 percent to 10 percent.
The NECA said yesterday in a statement titled, “Returning the Economy to the Path of Growth,” that these options were required in the face of dwindling revenue and myriads of economic challenges stalking the country and the seeming confusion on how to arrest the economy’s slide into deeper challenges.
The Director General of NECA, Mr. Adewale-Smart Oyerinde, stated that to, “return the economy to the path of sustainable growth demands that certain fundamentals must be gotten right. Without these fundamentals, the economy will continue in circles.
“Among these fundamentals are stable and highly predictable revenue streams, growth-focused monetary and fiscal policies, a secure and business-friendly environment, and a legal, regulatory and legislative system that promotes equity, justice and enables enterprise competitiveness. These fundamentals are currently either lacking or are highly compromised.”
Oyerinde also averred that most economic indicators paint a picture of a doomed economy. He said: “At the last count, the nation is neck-deep in debts hovering around N44.06 trillion in September 2022. However, if the N23.7 trillion CBN loan is securitized, our debt stock could amount to about N77 trillion in June 2023; crude oil production grew in the month of December 2022 by 4.2 percent month-on-month to 1.23 million barrels per day, but remained significantly short of the 1.8 million barrel per day allocated by OPEC to the nation, amounting to about $2.5 billion loss monthly at an average of $100 per barrel; oil theft seems to continue unabated and the unsustainable subsidy on petroleum products have all conspired to reduce government’s revenue, leading to absurd debt accumulation.”