The Nigeria’s Employers Consultative Association (NECA) has voiced apprehension about the country’s surging inflation and burgeoning debt, stating that these challenges are negatively impacting organized businesses, weakening the economy, and hindering national development.
During its 66th Annual General Meeting in Lagos, NECA reviewed the nation’s economic performance and highlighted the critical role of inflation rate, exchange rate, and interest rates in investment determination. It expressed concern that recent statistics are discouraging for investors and businesses.
NECA cited data from the National Bureau of Statistics, revealing that the annual average inflation settled at 21.47 percent in 2022, up from 15.63 percent in 2021. Additionally, inflation continued to rise in 2023, reaching 22.22 percent in April and 22.41 percent in May, eroding consumer real income and effective demand.
The association also raised alarm over Nigeria’s escalating public debt, which reached N46.25 trillion in December 2022. Total external debt stock stood at $41.7 billion, while domestic debt stock was N27.55 trillion. NECA warned that with a debt service to revenue ratio of 115 percent in 2022, the country may face a potential debt overhang.
NECA’s President, Taiwo Adeniyi, emphasized that these factors, along with faulty policy implementation, have discouraged foreign investment and dampened domestic investments. He advised the government to manage its debt through policies that encourage voluntary tax remittances, block governance leakages, and privatize non-performing assets.
While NECA commended recent policy moves by the government, it stressed the need for more efforts in addressing insecurity, improving energy/power supply, infrastructure, forex availability, and macroeconomic stability to support the growth of the organized private sector.
NECA pledged to continue its collaboration and advocacy engagements with the government to promote enterprise competitiveness and the overall development of the nation.
Sunnews