NECA Writes Buhari on Economic Palliatives for Private Sector

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Chris Uba

The Nigeria Employers’ Consultative Association (NECA) has called on the federal government to take more specific steps in providing palliatives and support to organised businesses to hedge them from the negative impacts of COVID-19, according to a leaked letter written by the association to President Muhammadu Buhari .

In the letter, which was signed by the Director-General of the association, Mr. Timothy Olawale, NECA requested for a temporary scheme for paying compensation to companies in risk of laying off in order to retain jobs.

The association also requested for support from government to negotiate and reschedule bank loans, and boost their businesses.

It also called for the suspension of payments of taxes and levies.

“We commend the federal government and the Central Bank of Nigeria (CBN) for the ongoing efforts at containing the COVID-19. In particular, we note the various interventions and palliatives through the Central Bank of Nigeria (CBN) aimed at ensuring business continuity.

“We also commend steps taken by your administration to further curtail the spread of the virus, to wit: the closure of Educational Institutions and Airports to prevent further spread of the virus in Nigeria.”

“While we note the efforts made thus far, we wish to state that the implications of the pandemic on businesses could lead to closure of companies, massive job loss and loss of revenue to government through payment of taxes, increase in social vices and increased insecurity, among others, leading to further economic crisis.”

NECA called on Buhari “to take more specific steps in providing palliatives and support to organised businesses.”

NECA enumerated the specific steps “temporary scheme for paying compensation to companies in risk of laying off in order to retain jobs. This is to aid the continued existence of companies and prevent layoffs within private companies facing financial pressures as a result of COVID-19.”