NBCC to FG: Nigeria Cannot Increase Money Supply from N53.1tn toN78.7tn in 2023 without Corresponding Increase in GDP

•Says it is ominous that lots of well-run companies struggling to meet obligations

Dike Onwuamaeze

The Nigerian British Chamber of Commerce (NBCC) has urged the federal government to drastically cut down the volume of Naira in circulation and begin to incentivise manufacturers and export oriented non-oil industries in order to improve the economy.

The President of NBCC, Mr. Ray Atelly, delivered this task yesterday, when he addressed a press conference in which he stated that it is ominous that a lot of well-run companies in Nigeria are beginning to struggle to meet their obligations. 

Atelly, also urged the federal government to implement a population policy that would reduce the country’s population growth rate of 2.4 per cent far below the country’s GDP growth of 2.5 per cent.

Atelly said: “It is time to stop printing Naira and worsening money in circulation. Let us instead start mopping up excess cash and start curbing 28.92 per cent inflation. How can money supply grow from N53.1 trillion in January 2023 to N78.7 trillion in December of same year without a corresponding increase in GDP?

“Today, the government is inaugurating a committee to discuss and agree on a new minimum wage. Whatever conclusions this group of eminently qualified Nigerians will reach at the end may still not be enough to take care of the needs of workers, unless we equally take steps to shore up the value of the Naira.”

He added that if the federal government would, “drastically cut down on the volume of Naira in circulation and then incentivise manufacturers and export oriented non-oil industries, the pressure on the Naira shall reduce drastically.” 

Atelly also emphasised that, “hunger knows no tribe, faith or party” because it cuts across them all and warned that “the only way to save Nigerians from further agony, is by treating with urgency the threat posed by hunger and idleness in our country.

“Let all urgent steps be taken to provide export incentives so that we may start exporting in good numbers and earning foreign exchange.”

He added that the time was ripe for Nigeria to implement, “a population policy that can reduce our population growth rate of 2.4 per cent far below our GDP growth of 2.5 per cent. Real development cannot take place under such a static situation. We can achieve 5.0 per cent GDP growth if it becomes a national agenda.”

Atelly said the government must act with urgency like never before to salvage the economy.

“The time to act is now. A lot of well-run companies in Nigeria are beginning to struggle to meet their obligations. This is quite ominous. Who knows what may happen next?”

The president of the NBCC stressed the need for the country to wake up from the dream that Nigeria was a rich country.

According to him, “we are not rich when we have 100 million citizens living below poverty line. Poverty is everywhere and all around. It is time to live less pretentiously and more realistically.”

Atelly added: “Let us produce with rudimentary tools and upscale as we go along. But produce, all the same. Produce as a national policy and flood our markets with made in Nigeria manufactured goods.”

In addition, “it is time we ended tax Audits and highly publicised tax raids that do more harm than good to the reputation of Nigeria and the Nigerian economy. It is time we stopped giving the world the impression that Nigerian companies are tax evaders.

“For there are our business associates who might pull out of vital projects, as a result, leading to a loss of investment inflow and employment opportunities.

“It is time to stop fighting corruption while Nigerians starve without seeing the war booty.

‘It is time that we stop handing out cash to individuals as a palliative when we can train them to become more productive.

“It is time to truly invest in our youths and increase their participation in economic activities beyond peripheral roles and borderline oprations.”

He reiterated his view that the economy is the last hope of the common citizen, and echoed that, “as custodians of that last hope, it behooves us to speak up and offer our viewpoints, so that our economy may be nudged unto the path of significant growth and positive expansion or diversification.

“No one group has all the answers. And the business of governance is complex and convoluted. There are lots of contending views even within the corridors of power. But we understand the economy and the pain points of our members, who tirelessly work hard to ensure that our people still have jobs, at great cost.”