By Oluwafunke Ishola
Lagos – The Nigeria Employers’ Consultative Association (NECA) has urged the Federal Government to accelerate its diversification agenda with greater focus on the implementation of the Economic Recovery and Growth Plan (ERGP).
Mr Timothy Olawale, the Director-General ( D-G) of NECA, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.
Olawale said that NECA’s advice to President Muhammadu Buhari’s second term in office is that the Federal Government should drastically reduce its over-dependence on revenues from crude oil export.
The DG urged government to give more priority to the needs of other businesses to fast-track national development and economic prosperity for citizens in the next four years and beyond.
He noted that in the last few years, the real sector had experienced mixed blessings, especially as it relates to trade liberalisation, backward integration, multiple taxation, poor access to funding and regulatory insensitivity.
“While we commend the various interventions by the Central Bank of Nigeria (CBN) and other government-owned financial institutions, the reality, however is that much more is needed to enable the real sector achieve its full potential,’’he said.
Olawale emphasised that urgent support required by the sector includes: access to single digit capital, business-friendly exchange rate regime, effective policy to encourage the patronage of made-in-Nigeria goods.
Others are: concerted efforts at reducing smuggling, tax incentives that would promote expansion of businesses, enforcement of harmonized taxes and levies by the Joint Tax Board at all levels of government.
He called for an improved and institutionalised regular consultation with the Organised Private Sector (OPS) through established structures.
He listed the structures to include: NECA, Manufacturers Association of Nigeria (MAN) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
Olawale told NAN that more private sector membership should be included in the National Economic Team to consolidate the nation’s socio-economic development.
He said that NECA was in support of the Presidential Enabling Business Environment Council (PEBEC), and the revolutionary assignment that was given to it.
Olawale stressed the need to encourage the growth of the real sector through a friendly regulatory environment.
“We are concerned about the contradictions between the mandate of PEBEC and the actions of some regulatory agencies of government.
“Recent experiences with regulatory agencies have been worrisome.
“We urge the Federal Government to rein-in on the regulatory agencies that have constituted themselves as clogs in the wheel of government’s Ease of Doing Business efforts,’’he said.
He noted that the success of a regulatory agency should not be measured by its income generation or sanctions on defaulting organisations, but by its impact and support to enable businesses thrive.
Olawale noted that power and infrastructure were critical enablers of development, and urged the government to encourage local production by fixing power and infrastructure across the country.
He also urged the government to take urgent steps to facilitate the completion of the Apapa Ports’ roads, Agbara Industrial Estate roads and other strategic roads across the nation.
The D-G said that the development of rail networks should be fast-tracked for easy movement of goods.
He added that necessary support should be given to players in the power sector for national interest and development.
He called for a strategic increase in the capital expenditure component of the budget for the next five years to drive economic growth, while suggesting more capital expenditure, less recurrent.
The NECA boss also called for increased investments in human capital development and employment creation.
He urged the government to make deliberate efforts at achieving inclusive growth rather than the skewed growth in some sectors of the economy.
Olawale noted that drastic change in the policy environment was not totally expected in the forthcoming administration, but stressed that bold action would be required to accelerate sustainable economic recovery.