By Eberechi Obinagwam
Following the ongoing cash and fuel shortages crisis, the Nigeria Employers’ Consultative Association (NECA) has called on the government to save the fragile economy from further collapse.
Speaking in Lagos, the Director-General of the Association, Adewale-Smatt Oyerinde stated that “One worrisome and distinctive feature of recent economic policies remains the poor implementation of such.
“While it is commendable to develop policies and programmes, the implementation of same is as important to the success of said policies and programmes. From the ban of 42 imported items from accessing FOREX, ban of Dairy products, to the closure of land borders and now, the redesign of the Naira, the trail of poor implementation decisions is palpable and worrisome.”
Speaking on the myriads of ongoing challenges, the Director-General said that: “it is obvious that the country is not short of good policies, but implementation by relevant authorities remains a challenge.
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“While the Naira redesign is commendable, the implementation so far is short of commendable. A policy that was purportedly designed to curb inflation, encourage the cashless culture and foster financial inclusion among others is inadvertently pushing many Nigerians into frustration in view of the current epileptic Bank transfer/e-payment systems and general inadequacy of online banking infrastructure.
“The current situation portends grave danger for the economy, even as Nigerians do not have access to the new notes, businesses are short of sales and most employees find it difficult to go to work because of lack of cash. It is apt to conclude that it could be counter-productive to seek to implement a cashless economy abruptly when at the same time the new Naira notes are being rolled out in limited quantities within an impracticably short timeframe.”
Speaking further on the ongoing challenges, the NECA Boss stated that: “As Nigerians grapple with limited availability of cash, they are at the same time confronted with a scarcity of Petrol, a product for which trillions of naira is being expended as subsidy, while businesses also continue to face increasing energy cost, inadequate FOREX, high operating cost amongst others.
“With the rising inflation and real reduction in purchasing power of the citizens, the Nation could be witnessing the death of many Small and Medium Scale businesses and also shutting down of many otherwise large businesses.”
Recommending ways out of this irrational and self-inflicted quagmire, Wale-Smatt urged that: “The Government should, as a matter of urgency ensure the availability of the new Naira notes and, prosecute saboteurs, if necessary, to ease the frustration of Nigerians and avert the impending breakdown of law and order. Contrary to the touted narrative, and according to financial experts, Nigeria does not have excess cash in circulation (it is less than 2% of GDP).
“The latest report by the CBN actually shows that currency in circulation is only N3 trillion out of N52 trillion aggregate money supply. If the Monetary Policy is not working as we have seen over time, it is not because of the N3trillion out of N52trillion (which is less than 6%). And making our currency scarce only increases the incentive for counterfeiting.
“Also, more immediate and drastic action should be taken to ensure an adequate supply of petroleum products to cushion the harsh effects of current scarcity. Making Nigerians spend hours in queue for a product that the Nation is naturally blessed with, which is also subsidized is not only contradictory but also shameful.”
