NECA to FG: Prioritise Manufacturing, Productive Sector in Forex Allocation

Dike Onwuamaeze

The Nigeria Employers’ Consultative Association (NECA) has tasked the federal government to prioritise the manufacturing and productive sectors in the allocation of the country’s foreign exchange.

This call was made yesterday by the newly appointed Director-General of NECA, Mr. Wale Oyerinde, who also enjoined the government to commence a deliberate consultation with stakeholders in Nigeria’s organised private sector for alternative policy options that would re-energise Nigeria’s economy. 

Ayorinde said: “Economic interventions aimed at improving living standards and enterprise sustainability should be implemented. While foreign exchange scarcity persists, allocation of the available foreign exchange to manufacturing and other productive sectors of the economy should be given priority.”

He noted that although the government has been making efforts to salvage the economy, there is, however, need for a more holistic approach to resuscitate the stuttering economy.

He said: “A deliberate and economic priority influenced approach and wide consultation with stakeholders should commence, with the view of harvesting alternative policy options to re-energise all sectors of the economy.”

Oyerinde stated that there is no better time than now that the nation is faced with dire combination of spiraling inflation, rising energy cost (aviation fuel, diesel, etc.), scarcity of FOREX, dwindling value of the Naira, an almost comatose aviation sector, stuttering education system, rising debt, depleting foreign reserve and rising fuel subsidy expenses among others, which threatened to lay bare the country’s economy” to commence this consultation.

He averred that Nigeria has always lived dangerously on the precipice by relying on the complexities of global crude oil demand and supply for about 90 per cent of its foreign exchange earnings and 80 per cent of its budgetary revenues.

He added that “a dangerous blend of self-destructive tendencies, insecurity and fiscal and monetary policy inconsistencies have also conspired to make the situation worse. While revenue has continued to shrink, the nation continues to dig its feet deeper into debt.  

“While some stakeholders have canvassed that the revenue to GDP ratio of the country is healthy, recent announcement by the minister of Finance, Budget and National Planning that revenue to debt service ratio is in the negative calls for urgent concern.”