Private Sector Operators Harp on Reforms to Save Economy

Private Sector Operators Harp on Reforms to Save Economy

Dike Onwuamaee

Presidents of the Organised Private Sector of Nigeria (OPSN) have tasked the federal government to muster the political will to initiate crucial economic reforms that would save the Nigerian economy from being crippled by its manifold teething problems.

The presidents of the OPSN also warned the government to launch such reforms without further delay since the Nigerian economy is in need of definite proactive steps that would make it competitive and attractive to investors and also spare it the contradiction of being the continent’s biggest economy with the highest poverty and unemployment rates in Africa.

They also decried the situation whereby government policies put the operators of the private sector in tight corners as, “national policies are not allowed to gestate before being changed, which leads to loss of private sector investments.”

Membership of the OPSN is made up of the Manufacturers Association of Nigeria (MAN), the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Employers’ Consultative Association (NECA), the Nigeria Association of Small Scale Industries (NASSI) and the Nigeria Association of Small and Medium Enterprises (NASME).

The OPSN expressed these views during a media briefing with the theme: “The State of the Economy and A Call for Urgent Action.”

The Chairman of the OPSN, Mr. Taiwo Adeniyi, who read the keynote address during the conference, said, “while there are ongoing efforts by the governments at all levels to ensure the sustenance and development of the Nigerian economy, it is obvious that more needed to be done, and urgently too, to ensure the survival of the economy,” adding that “as at today, it is obvious that the Nigerian economy is challenged on many fronts and unless crucial economic reform and political will are demonstrated, the teething problems might cripple the economy.”

Adeniyi said, “it is alarming that the largest economy in Africa is also one of the most challenged. Nigeria, which has the world’s highest number of extremely poor citizens, is on track to set yet another record: the highest unemployment rate.

“It is important to note that Nigeria’s unemployment rate is the highest among Africa’s top ten largest economies.”

He stated that the business community and key stakeholders in the Nigeria project believed that the economy could witness an economic renaissance that would place it among the world’s top economies.
The OPSN, therefore, suggested a mix of fiscal, monetary and trade policies that would provide the necessary impetus that would rejuvenate the economy.

These include giving more attention to Public Private Partnership (PPP) as a way to address the huge infrastructure deficits and provide decent and sustainable jobs that would lift significant number of people from poverty rank even before the desired date of 2030.

Other policies advanced by the OPSN also include the unification of the foreign exchange rates and the jettisoning of multiple currency practices, which according to them have not reflected the true value of the naira.

It said: “In order to jump-start local production in the economy and improve the growth of our Gross Domestic Product (GDP) to the level above the population growth rate, which is about three per cent, right pricing and availability of foreign exchange to the productive sector of the economy among other factors, would be required to ensure speedy growth and development of the economy.

“We believe that CBN action in defending the naira has a limit; therefore, we advocate for a more deliberate measure and drive in increasing local production for export potential.

“Despite the fact that we have huge export potentials, our import items are still dominated by products that should have been produced in the country to reduce the country’s demands for foreign exchange.
“A deliberate structural policy towards this should be developed in collaboration with key stakeholders in the value chain, so as to reduce the consistent depletion of the foreign reserves and rising trade deficits.”

They also stressed the need for the economy to be refocused towards developing primary sectors like agriculture and mining to deliberately creating high skilled and technology intensive opportunities in the manufacturing and services sector.

The OPSN also urged the government to leverage the AfCFTA agreement to launch a major campaign for increased non-oil exports.

It also lamented that the current insecurity in the country remains a dis-incentive for investment, which the group stated was evident in the, “dearth of both foreign and domestic investment inflows in the last four quarters and could linger for a longer period, unless drastic steps are taken to address the menace.”

It also urged government to hasten the process of diversification of the non-oil economy to expand its revenue sources and move away from oil-based economy.

It recommended the extension of the interventions that buoyed the agricultural sector to the manufacturing, solid mineral and other sectors with high inter-industry linkages and huge potential for job creation should be addressed.

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