NECA calls for policy rejuvenation in agriculture, manufacturing sectors

The Nigeria Employers’ Consultative Association (NECA) has urged policy rejuvenation in key sectors like Agriculture, Mining/ Quarrying, Telecommunication, Manufacturing and Construction as several sub-sectors witnessed declining growth.
NECA’s President, Mr Taiwo Adeniyi made the call at the association’s 64th Annual General Meeting held on Thursday in Lagos.
Adeniyi said the oil sector contracted by 2.21 per cent from 19.76 per cent in Q4, 2020 and 5.06 per cent in Q1, 2020, while the non-oil sector grew by 0.79 per cent compared to 1.69 per cent in Q4, 2020 and 1.55 per cent in Q1, 2020.
He said noticeable sectors with positive growth included Agriculture, 2.28 per cent; Manufacturing, 3.4 per cent; Gas, 8.66 per cent; Water Supply, Waste Management, 14.8 per cent; Construction, 1.42 per cent and Telecommunications, 7.69 per cent.
“There is the need to intensify efforts and make more sectors and sub-sectors achieve higher growth levels in subsequent quarters.
“This can be achieved by developing and implementing more friendly investment driven policies, most especially in the manufacturing and telecommunication sectors, among others.
“Nigeria requires more than just a resurgence of its economy; it must also increase the inclusiveness of its growth.
“Government and relevant stakeholders must work together to address the constraints to value-chain development in high-growth and employment-elastic sectors.
“Such sectors include manufacturing, construction, trade, education, health, and professional services, with ICT and renewable energy sectors serving as growth enablers, ” he said.
Adeniyi said also that addressing insecurity challenges, rising costs of food commodities and transportation, low investment pattern, challenge in sourcing of foreign exchange and rising inflation would improve performance of the sectors and sub-sectors.
According to him, the economy should end the year in a positive and higher growth trajectory, if the areas identified are given adequate attention.
“Curtailing the rising insecurity and regional agitation will bring to the fore, positive policy direction in the next two quarters.
“Following the constrained fiscal space faced by the government, investment in critical sectors is what will drive economic recovery and sustain growth momentum in the medium term.
“Attracting and retaining investments into critical sectors in Nigeria will require a stable environment, where policies are fairly predictable or at least policy uncertainties are reduced to the barest minimum, ” he said.
The NECA president also said that a successful Public-Private Partnership (PPP) structure was required to bridge the infrastructural gap that would enhance competitiveness of the nation in the Africa Continental Free Trade Agreement (AfCFTA).
He said that engagement was on-going as regards positioning Nigeria to maximally benefit from the AfCFTA.
Adeniyi, however, urged relevant government agencies critical to the success of the engagements to take it as an urgent national assignment that demanded extreme commitment and sacrifice.
He said, “all efforts should be directed at strengthening domestic value chains, particularly the agro-allied industrial base. ”