The Nigeria Employers’ Consultative Association, NECA, and the Manufacturers Association of Nigeria, MAN, have said government agencies, ministries, departments, MDAs, have become undertakers of businesses in the country.

They also lamented that rising inflation, multiplicity of taxes and threats of strike and protests, among others, have continued to frustrate organised businesses in Nigeria.

Former president of NECA, Sam Ohuabunwa, spoke in a similar manner.

NECA and MAN, however, commended organised businesses for their resilience, despite the hostile business environment.

They spoke at the third edition of NECA Employers’ Excellence Awards 2022, with the theme “Against All Odds,” in Lagos late Wednesday night.

‘Businesses can’t take these anymore’

Speaking at the event attended by business leaders in the country, the Director-General of NECA, Mr. Adewale-Smatt Oyerinde, warned that organised businesses will no longer accept the situation where their social partners or government had become undertakers of legitimate businesses.

He said: “Despite the fact that inflation rate is almost 30 per cent, multiplicity of taxes and threats of strike and protest, organised businesses remain standing.

‘’We are here to celebrate the resilience of businesses because it is not easy for us to be in the trenches from January to December, advocating, engaging and writing when the need arises.

‘’This is a time for us to breathe. As organised businesses, this event is for us to sit down together and reflect, not on how bad things have been, but what the future holds.

“This is for those who have been wondering that if businesses are not doing well, there won’t be a gathering to celebrate. This is a message for agencies, ministries, departments of government and authority that hitherto have played the role of undertakers for many businesses.

“Moving forward, organised businesses will not allow anybody, either social partners or the government, to continue to be the undertakers of legitimate businesses.

“The best promoter of foreign direct investment, FDI, is basically local businesses. This night is for us to celebrate your businesses, its doggedness, your capacity and potential to generate employment; your potential and capacity to increase the Gross Democratic Product, GDP, of this country beyond the imagination of government and also celebrate your contribution to the growth of this country, not only Nigeria, but the whole Sub-Saharan region.”

Although the NECA boss was not specific on how the MDAs were making things difficult for businesses in the country, Vanguard gathered that implementation of policies enunciated by government to bring relief to businesses were often frustrated by MDAs’ personnel.

‘MDAs have created unfriendly business environment’

Similarly, the Director-General of MAN, Mr. Segun Ajayi-Kadir, corroborated issues raised by NECA, saying most MDAs have made the environment in the country too unfriendly for business.

He said Nigeria urgently needs investments to be able to create jobs for teeming unemployed youths, stressing that current harsh business environment had made this difficult.

He said: “We run an economy where the environment is hardly conducive for business, but you see patriots, resilient investors and you see people who, in spite of all odds, believe in Nigeria. Therefore, tonight is for celebration.

“It is to celebrate resilience and belief in a country that has continuously underperformed far below its potential. Today, we all represent champions that will ensure Nigeria takes its place as a leading economy in Africa.

“I want to urge the organised private sector to influence policies that will improve our economy. We celebrate you and we thank those who have graced this occasion because you represent what Nigeria should be, which is the ‘would do spirit.’”

On his part, former President of NECA, Mr. Sam Ohuabunwa, said: “if Nigeria wants to grow its economy, it needs investment because it is critical to funding, establishing businesses, programmes and projects.

“These businesses, programmes and projects will create jobs. Jobs will create wealth and wealth will create prosperity and drive poverty away. The investments we are looking for are both foreign and domestic.

“I want to encourage employers, investors and everyone doing business in our country to do more. This country needs a whole lot of investment, we need more jobs to be created, we need more wealth to be created, so we can eliminate poverty or at least improve upon it.”

Nigerians not interested in budget figures if prices of bread, rice not reducing —Rewane

In a related development, prominent economist and member of the Presidential Economic Council under President Muhammadu Buhari’s administration, Bismarck Rewane, has said Nigerians are not interested in budgetary figures, if the prices of basic commodities, such as rice, bread, and garri, failed to go down.

He was reacting to the 2024 budget presented by President Bola Tinubu in the National Assembly on Wednesday.

Rewane, who stated this in an interview on Channels Television’s Business Morning show yesterday, said: “In the end, budgetary arithmetics, budgetary mathematics in economics, is of no use to anybody except when, by this time, six months’ time, we are buying rice at N40,000 a bag, rather than N60,000 a bag; if we are buying bread at N900 a big loaf, instead of N1,300, which we are doing today. If we are buying garri at lower prices.

“The people are not interested in whether the budget is balanced or what the debt is. How does it (the budget) affect their day-to-day livelihood? That is the key thing.”

Recall that the President President Bola Tinubu, in his maiden budget presentation before the National Assembly, said the proposed N27.5 trillion 2024 budget will ensure micro-economic stability, poverty reduction, and greater access to social security.

He also highlighted priority areas, such as security, local job creation, macro-economic stability, investment environment optimization, human capital development, poverty reduction, and social security.

He fixed recurrent non-debit expenditure at N9.92trn, capital expenditure at N8.73trn, debt service at N8.25trn, revenue at N18.32trn, new borrowings at N7.83trn, and deficit at N9.18trn.

But Rewane, who is Managing Director of Financial Derivatives Company Limited, said in the final analysis that the people are not interested in figures but want to feel the impact of government’s economic policies as many are currently under pressure.

“As you know, prices are up and people are under tremendous pressure. The rate of poverty in the country is driving people mad.

“You will notice that on the streets of Lagos in particular, the number of lunatics has increased, and part of it is driven by poverty. There are many mental health issues. People are pushed to the wall. Some of them walk across the road, even in moving traffic.

“People need to feel the impact. The impact is not going to be felt because of 10 or 12% of GDP, that is, N27 trillion; it has to be more. Where is the money going to come from?

“It’s going to come from investors, and investors are going to come here when they are sure that their money is safe and the environment is clean, and they can look forward to a brighter future,’’ Rewane added.

He said government must be honest with Nigerians about the economic realities, saying “honesty is in short supply.”

According to him, people cannot start pretending to be happy when they are not.

“You can fake news, but you can’t fake prosperity,’’ Rewane said. (Vanguard)

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