TheCable

The Nigeria Employers’ Consultative Association (NECA) has urged the federal government to stop the current monetary rationing and ensure the ideal amount of money is in circulation to stabilise the economy.

Adewale-Smatt Oyerinde, NECA’s director-general, made the call in a statement on Tuesday.

He also expressed concern over the rising unemployment rate in the country.

According to the director-general, given the current difficult economic climate, the increase in the rate may be a sign of the impending unemployment crisis in the nation. 

“The government should end the monetary rationing which is going on at the moment and ensure that the optimum quantity of money needed to stabilise the economy is in circulation,” he said.

“It should review and moderate the fuel subsidy removal; subsidy is a tool for socio-economic stability and growth.

“Fuel subsidy, unemployment allowance, free medicare, social security allowance, old age allowance, child upkeep allowance are all subsidies; incidentally only fuel subsidy existed in Nigeria.” 

To prevent a financial collapse in the nation, the director-general demanded the floating exchange rate system be reviewed.

He also asked the government to reconsider its position on the tax credit for infrastructure, specifically for private-sector road construction.

“Also, it should review its tax projections from the private sector, particularly in the present condition,” he said.

“The truth is that high taxes do not help anybody, not even the government; high taxes, as it is currently becoming, has the tendency to crowd out a swathe of businesses in the country.”

On February 19, 2024, the National Bureau of Statistics (NBS) had said Nigeria’s unemployment rate increased in the third quarter (Q3) of 2023 to 5.0 percent.