The Nigeria Employers’ Consultative Association (NECA) has commended the Nigeria Labour Congress (NLC), headed by Joe Ajaero, and the Federal Government for embracing social dialogue and heeding the call of stakeholders to abort the planned national strike, by the Congress, over cash squeeze.
Director-General of NECA, Adewale-Smatt Oyerinde, in a statement, said the Central Bank of Nigeria (CBN) had shown goodwill and true support for the ailing economy by immediately disbursing cash to the commercial banks and directing them to open beyond their normal working hours, to ease the cash crunch in the nation.
He commended the efforts of the CBN Governor, Godwin Emefiele, and the Minister of Labour and Employment, Dr. Chris Ngige, in getting involved and monitoring the disbursement to ensure compliance with the bank’s directive to end the cash crunch.
The NECA boss recalled that business activities had stagnated in the last 10 weeks due to the implementation of redesigning of the currency policy nationwide, leading to reduced productive output, high inventory and jobs cut, as well as impediments to personal and business transactions.
He, however, warned that the ripple effects of the cash swap policy would linger as it would take a considerable time for businesses, especially the informal sector to recover, as many of them had closed due to the low purchasing power of consumers.
According to him, the government must demonstrate a similar commitment to addressing other monetary and fiscal policy challenges that are currently stifling businesses, such as foreign exchange dichotomy, fuel subsidies and multiple taxations, among others.
He said that the quick response by the government to ease the cash liquidity and the corresponding immediate positive effect on the economy demonstrated that government can address policies once it is determined to do so.
He advocated for similar determination and consultative engagements with the private sector and other relevant stakeholders to proffer solutions to business challenges, to facilitate competitiveness and productivity.
