Increasing Retirement Age May Heighten Youth Unemployment, Says ABCON

By Oluchi Chibuzor

The Association of Bureaux De Change Operators of Nigeria (ABCON) has cautioned against increasing the retirement age, saying it would work against policies to reduce youth unemployment in the country.

The association stated this in its Quarterly Economic Review report for the Third Quarter of the year (Q3’2020). It urged the federal government to prepare post retirement facilities instead of increasing retirement age.

The association’s position was against the backdrop of the recent decision of the federal government to increase the retirement age of teachers from 60 years to 65 years.

“Increasing workforce retirement age is counterproductive under conditions of high youth unemployment rate, instead government should prepare solid post retirement facilities”, the association stated, adding that the FG should promote policy to reduce youth unemployment with a view to addressing social unrest.

While noting that recovery from the severe impact of the COVID-19 pandemic on the nation’s eonomy will be determined by a structured and people-oriented policy aimed at resolving the macroeconomic imbalance arising from the disruptions, ABCON advised that, “Government spending should be directed towards business recovery, poverty alleviation and infrastructure development but structured to give a good mix with monetary policy trust.

The association also cautioned the Central Bank of Nigeria (CBN) against pegging of the interest rates and other variable, stressing that this can lead to malfunctioning of the system.

The association instead, recommended that the monetary authority should intervene in selected priority sectors through incentives, adding that this would allow for smooth flow of the whole economy, especially when complemented with fiscal management efforts.

The association added: “It is imperative for the monetary authority to actively participate with precision through market level interventions. Volumetric interventions and demand push exchange rates must automatically influence the market in the direction the authority desires.”