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NECA to celebrate resilient businesses — DG

Lagos, Nov. 22, 2023: The Nigeria Employers’ Consultative Association (NECA) is set to celebrate businesses, which, in spite of the multifaceted challenges they face, remain resilient and continue to survive.

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, at a news conference on Tuesday in Lagos, unveiled plans for the 3rd Edition of NECA Annual Award for Excellence, to hold on Nov. 29.

“We have said consistently that Nigerian businesses are probably one of the best organisations within the context of the demonstration of resilience and doggedness.

“The resilience and doggedness of an average Nigerian business, notwithstanding the whole challenge that is faced, is exactly what we are celebrating.

“The capacity of the Nigerian business to continue to provide or meet its obligations to the regulatory authorities, its internal stakeholders, that is, the employees, the community in which they operate, is what we are celebrating.

“Also, the resilience of that same organisation to continue to maintain staff without retrenching in spite of all the multifaceted challenges that they face, is exactly what we are celebrating.

“So, this award as the theme connotes, “Against All Odds” many of those organisations are still surviving and contributing to national and global development, is what we are celebrating, “ Oyerinde said.

Also, the Chairman, Award Planning Committee, Mr Steve Olayinka, said that the intention of the award was to project sustainability.

He said this was to ensure that businesses were as competitive as those in other parts of the world.

According to him, if a business can survive in Nigeria given the myriads of challenges that it is going through, then that business can survive anywhere in the world.

“What we intend to add is to build systems that can continually make us able to survive anywhere we find ourselves as a business.

“So, the business environment is actually looking at how do we instil, empower businesses, and ensure that they are able to continue to do what they are doing.”

Olayinka said what constituted the process of the award include the way people were treated within the organisation; how documentation is done within the organisation; how regulatory controls and agencies are related in the course of carrying out businesses.

He said also that the essence of the news conference was to create awareness among businesses for them to see the award as vital to ensuring sustainability within the organised private sector.

“This press briefing is to create more awareness for this award, to let organisations know that they stand a better chance of getting more consistency in the way they run their businesses by participating in the award.

“We are trying to promote sustainability, protect businesses in Nigeria against the influx of other importation that may be competing with us, which is healthy, though; also, to ensure that we continue to do it better year in year out, “ the chairman said.

NECA worries over Nigeria’s huge debtv

NECA calls for definite timelines, quick action on announced palliatives

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Lagos, Oct. 2, 2023: The Nigeria Employers’ Consultative Association (NECA) has called for more definitive, broader interventions with timelines for implementation of pronouncements made by President Bola Tinubu in his Independence Day speech.

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, made the call in a statement on Sunday in Lagos in reaction to the president’s address to the nation in celebration of Nigeria’s 63rd Independence Day.

“Following the president’s Independence Day address to the nation, NECA noted the address and urged the Federal Government to be more definitive in its pronouncements and expedite action on all announced palliatives.

“While we commend the president’s commitment to fix the economy and alleviate the suffering of Nigerians and organised businesses, more definitive, broader interventions with timelines for implementation will also be very important.

“The president’s address was full of intent, without definitive timelines for implementation of the laudable plans, “ he said.

The director-general commended the announced palliatives including N25,000 wage adjustment for a section of the public servants; provision of Compressed Natural Gas (CNG) buses and further increase of the social safety nets investments to cover another 15 million households.

He said, however, that the wage award did not take into cognisance the fact that all Nigerians, including organised businesses were affected by the fuel subsidy removal and also need some measure of support.

“Having mentioned the procurement of the CNG buses in his August address to the nation, we had expected a more definitive and time-bound pronouncement on when the buses will be procured and put to use.

“It is important that the procurement should be accelerated to aid the populace and reduce transportation pressures, “ he said.

Oyerinde said that there was need for wider consultation and private sector engagement.

He said: “While government continues to roll out its plans to ameliorate the challenges on the populace, more definite efforts with realistic time-lines should be made to revive the economy, and the organised private sector being the engine of national development.

“It is not enough for the Federal Government to dole out money in the name of palliatives to state governments, a more innovative, effective and trackable distribution and monitoring mechanisms should also be put in place to measure the impact and efficiency of the implemented schemes.”

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NECA urges Nigeria to respect ILO convention to ensure industrial peace

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Lagos, Sept. 4, 2023: The Nigeria Employers’ Consultative Association (NECA) has urged government at all levels to respect the provisions of the International Labour Organisation (ILO) Convention 087 to maintain peaceful industrial harmony in the country.

The Director-General, Mr Adewale-Smatt Oyerinde, made the call in a letter to the Minister of Labour and Employment, Mr Simon Lalong on Sunday.

Oyerinde said that recent events necessitated the letter, in view of, what he described as, the dangerous trend that it portended for the country’s industrial relations system and position in the international labour community.

According to him, some state governments are interfering with the running of the unions.

“As a respectable nation in the ILO, with Nigeria being the current chairman of the ILO Governing Body, it is worrisome that government, both at the Federal and State levels will violate the provisions of Convention 087 of the ILO.

“It guarantees the freedom of association and protection of the rights to organise for workers and employers; this is equally guaranteed and enshrined in our laws: section 40 of the 1999 Constitution, as amended.

“Your Excellency, we count on your experience and goodwill to address this anomaly that could plunge the nation into ridicule at the international community, cause disruption in our industrial relations practice, among others, “ he said.

The Director General, in the letter, said it was no longer news that a social partner and another constituent of the ILO, Nigeria Labour Congress continued to face different onslaughts by some state governments and their agents.

He said: “May we affirm, most respectably that the articles of convention 087, especially articles 1, 2, 3 and 4 among others, explicitly guarantees the rights of workers and employers to exercise these rights without interference from government.

“This position was also strongly affirmed at the last National Labour Advisory Council meeting held from July 12 to 14, 2023 at Uyo, Akwa Ibom.”

NECA worries over Nigeria’s huge debtv

NECA worries over rising rate of business divestment, capital flight

Lagos, Aug. 10, 2023: The Nigeria Employers’ Consultative Association  (NECA) has expressed worry over the recent trend of relocation and divestment of businesses, saying it was unfortunate.

The Director-General,  Mr Adewale-Smatt Oyerinde, said this in a statement on Wednesday in Lagos.

He said that such trend was a major reason why the rate of unemployment continued to soar perpetually with consequential rise in crime and other security issues.

“When businesses cease operations, divest or move to other profitable and hospitable environments, large number of Nigerians become unemployed.

“Inadvertently, the country loses income from taxes, social investment is hindered and poverty holds sway, “ he said.

According to him, in most developing economies across the globe, private businesses account for over 93 per cent of employment, including formal and informal jobs.

He said that the private sector continued to remain the catalyst for economic growth, being a major contributor to national income and the efficient flow of capital.

Oyerinde, therefore, called for a more definitive and urgent intervention.

“While we acknowledge and commend the current administration’s effort to address the concerns of the private sector and the steps it took to provide some respite to businesses in specific sectors of the economy, more needs to be done.

“Beyond the tax reforms activity and the provision of palliatives to select corporate entities, government should, by deepening engagement with the Organised Private Sector, provide the right intervention.

“Also, incentive, not only to attract more Foreign Direct Investment, but to also prevent more companies from shutting down, divesting or leaving the country,” he said.

The director-general urged the government to work collaboratively with the private sector with the view to developing and implementing action plans capable of promoting enterprise sustainability and competitiveness.

He said: “Sectors such as cosmetics, services, pharmaceuticals, aviation, textile, maritime, construction and, in fact, the real sector should be prioritised as they have the capacity to generate jobs.

“Expeditious action should be taken to finalise the appointment of Ministers and constitution of Boards of Agencies to drive the economic programmes of the administration.”

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NECA calls on NLC to have a rethink over protest

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Lagos, July 31, 2023: The Nigeria Employers’ Consultative Association  (NECA) on Sunday said there was urgent need to protect the objectives of sustainable enterprise, decent work and national development.

NECA’s Director-General,  Mr Adewale-Smatt Oyerinde, said this in a statement, in view of the proposed Aug. 2, protest by the Nigeria Labour Congress.

Oyerinde expressed worry over what he described as the parlous state of the economy, and recent mobilisation for civil action by NLC and Trade Union Congress of Nigeria.

He, therefore, called for urgent action by government and other stakeholders.

“A call for ‘strike and mass action’ by any social partner at this difficult time, in furtherance of the achievement of its objectives could potentially cause a breakdown of law and order.

“This is also with attendant risk for organised businesses and the nation as a whole, “ he said.

The director general  said that strike, threat of mass action or civil disobedience that could potentially disrupt the economic activities of businesses would be counter-productive.

Oyerinde noted that sometimes, engagements between organised labour and government might end in deadlock.

He said, however, when that happens, the consequential action by  labour should not, in any way, hinder anyone from going about their businesses peacefully or cause anyone to be intimidated or harassed.

“We re-emphasise the importance of social dialogue, a potent instrument of the International Labour Organization, and a globally accepted mechanism for dispute resolution.

“While it should be noted that various ILO Conventions, rcommendations, international treaties and local legislations guarantee certain rights and privileges to social partners, a call for mass action or civil disobedience is certainly not one of them, “ he said.

NECA urged government to, as a matter of urgency, take immediate steps to ameliorate the economic trauma being faced by workers, Nigerians and organised businesses.

He expressed concerns that many businesses were shut-down and many others were on the verge of closing down.

According to him, such will exacerbate the current unemployment rate and drag many further down the poverty line.

“We strongly request that a coordinated implementation of the various pro-growth and other palliative schemes should commence.

“It should commence without further delay, at the federal level to complement the efforts of some state governments and organised businesses.

“The need for transparent communication and building of national consensus at this difficult time cannot be over-emphasised, “ Oyerinde said.

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Rising cost of living impacting on poverty, production index – NECA

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Lagos, July 21, 2023: The Nigeria Employers’ Consultative Association (NECA) has said the rising cost of living in the country is already having a negative impact on the country’s poverty and production index.

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, expressed concerns in a statement on Thursday in Lagos.

“In the last one year, we have witnessed perpetual rising inflation, commodity price instability, reduced industry capacity utilisation and a gradual dwindling of the purchasing power of Nigerians, all of which has further dragged many enterprises out of existence and Nigerians below the poverty lines.

“While the current administration has lined out policy plans to improve the living standards of the masses, such plans must be backed by deliberate and quick responses.

“As it is obvious to all, there is rising agitation owing to the rising cost of living, compounded by the increasing cost of Premium Motor Spirit and threat of increment in electricity tariff among others, “ he said.

He commended the removal of fuel subsidy, renewed efforts at curbing oil theft, and ongoing attempt to reform the tax administration system with the appointment of Mr Taiwo Oyedele as Chairman of the Tax Reform Committee.

The director general, however, said it was important that government took more drastic steps to stop the slide into hopelessness by Nigerians and organised businesses.

“It is instructive to note that businesses and households are currently being over-stretched beyond their shock buffers.

“Already, there is a drag on business operation as production plans are persistently displaced by frequently changing factor costs, and households are constantly adjusting consumption to accommodate their inadequate real income, “ he said.

Oyerinde, therefore, urged government to urgently take deliberate actions to mitigate the persistent rise in inflation, so as to address, what he described as, the fast-accelerating cost of living in the country.

According to him, such actions may include price stability mechanisms, periodic feedback on the progress of the ongoing work at the refineries, reversal of the Value Added Tax on AGO, and suspension of the planned upward review of electricity tariff.

“More importantly, government must conclude all palliative measures, which we expect should provide some immediate respite to both individual and corporate citizens, “ the NECA boss said.

NECA worries over Nigeria’s huge debtv

Petrol price adjustment quite unfortunate – NECA

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Lagos, July 19, 2023: The Nigeria Employers’ Consultative Association (NECA) has said the recent increase of petrol was quite unfortunate and worrisome in spite of the ongoing challenges that businesses and Nigerians were facing.

The Director-General of NECA, Mr Adewale-Smatt Oyerinde, who kicked against the price adjustment, said on Tuesday in Lagos that the timing was rather unfortunate.

The Nigerian National Petroleum Company Limited (NNPCL) has further adjusted the pump prices of Petrol, known as Premium Motor Spirit (PMS) from N537 to N617 per litre.

Oyerinde noted that rather than the prices of fuel becoming more competitive, coming down, it was taking a different trajectory of going up which was compounding the already difficult position of organised businesses, households and employees.

“Our position remains: it will be unfortunate to incapacitate those that you are trying to save.

“We know that we canvass for the removal of fuel subsidy, but the point is we cannot connect why the NNPCL is still fixing prices when it is supposed to be a deregulated environment.

“Also, where supply and demand is supposed to determine prices and we also know that in the first two weeks of subsidy removal the consumption level dropped and if it dropped, it shows that the forces of demand and supply should be allowed to continuously play its role, “ he said.

The NECA boss said that the association was in support of the steps President Bola Tinubu’s had taken within the context of the fiscal and monetary policy framework.

He, however, urged government to take dispassionate look at the issues and those reforms should allow Nigerians to breathe.

“So, whatever actions government needs to take, it needs to take those actions now, so that we can bend, cut curve and focus on issues concerning growth.

“We also appreciate the fact that once you are in a hole, the first thing you stop doing is to stop digging; so, while you stop digging, you should make conscious effort to get out of the hole as quickly as possible.

“We know we are in a hole and government has taken a bit of steps to stabilise us, but we should stop the trajectory of the pain and the sacrifices that we expect Nigerians to endure; moreso, when we are not seeing a corresponding sacrificial action from government, “ Oyerinde said.

NECA worries over Nigeria’s huge debtv

NECA to focus on non- oil trade for creation of more jobs

Abuja, July 11, 2023: The Nigeria Employer’s Consultative Association (NECA) has express readiness to focus on non-oil trade for the creation of more jobs, boast foreign earnings and investments for the development of the country.

Mr Taiwo Adeniyi, NECA President said this at the 2nd Edition of Nigeria Employer’s Summit for 2023 on Monday in Abuja.

The two- day summit  was themed, “Trade and Non-Oll Export: Changing the Narrative for Rapid National Development.”

According to Adeniyi, ”today, we focus our attention on the imperative of increasing trade and non-oil export, given the unpredictability and volatility of the global crude oil market from which Nigeria generates its major source of income.

“Our desire is that the outcome of this Summit will kick-start a number of immediate measures that will reshape our disposition and attention to non-oil international trade.

“This will increase foreign earmngs, spur investment, encourage job creation and contribute to amelirating the debt-burden the country currently faces,”he said.

He also said the summit  would address the various thematic areas, challenges, solutions and opportunities to accelerate the socio-economic progress of of the nation.

He added that the summit also would serve as a unique platform for participants to forge  relationships, nurture collaborations, and explore innovative ideas to move their respective businesses forward.

Adeniyi therefore, implore all participants to fully engage in the conversations, share experiences, and contribute their expertise to ensure fruitful outcomes.

Also, Mr Nebeolisa Anoko, Permanent Secretary, Budget and National Planning said the summit was apt especially when the country was facing fiscal challenges.

Anoko said that there was need for Nigeria to endure effective diversification of her revenue base by focusing on growing the economy, trade and non – oil exports.

According to him, the National Bureau of Statistics, in its recent report stated that Nigeria’s non-oil sector grew by 2.77 per cent in Q1 of 2023.

“This was lower by 3.30 per cent compared to the rate recorded in the same quarter of 2022 and 1.67 per cent lower than the fourth quarter of 2022.

“In real terms, the non-oil sector contributed 93.79 per cent to the nation’s GDP in the first quarter of 2023, marginally higher than the share recorded in the first quarter of 2022 which was 93.37 per cent and lower than 95.66 per cent  recorded in the fourth quarter of 2022.

“Considering that crude oil generates about 90 per cent of Nigeria’s foreign exchange earning – which has been so for decades, this data provides an interesting perspective to not only the country’s capacity to improve its foreign exchange earnings through non-oil exports but also to improve the Nigerian economy in general,”he said.

Anoko added that  given the above statistics, the vital role of the private sector in Nigeria’s Economic development cannot be over emphasized.

He said that  in furtherance of the Federal Government’s objectives of creating jobs, reducing unemployment and promoting financial inclusion, the Nigeria Export Import Bank (NEXIM) has a facility that supports Small and Medium Scale Enterprises (SME).

“That triggers the non – oil exports development growth and also contribute to the foreign exchange revenue earnings of the country.

“The facility will also; improve access of exporters to concessionary finance to expand and diversify the non-oil export baskets; attract new investments and encourage re-investments in value-added non-oil exports production and non-traditional exports.

“Also to shore up non-oil export sector productivity and create more jobs; support export oriented companies to upscale and expand their export operations as well as capabilities; diversify and increase the level of contribution of non-oil exports revenue.

“That is towards sustainable economic development; and  broaden the scope of export financing instruments, among others,” he said.

He further said the ministry would continue to  support the efforts of the NECA in addressing the issues around the growth of the non-oil sector of the economy.

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Tinubu’s tax reforms excite NECA

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Lagos, July 7, 2023: The Nigerian Employers’ Consultative Association (NECA) has lauded the decisive actions taken by President Bola Tinubu in fostering a more conducive business climate in Nigeria through strategic tax reform measures.

NECA’s Director-General,  Mr Adewale-Smatt Oyerinde, made the commendation in a statement on Thursday following Tinubu’s signing of four executive orders.

The president had earlier signed four Executive Orders which includes the suspension of the five per cent excise tax on telecommunication services as well as the excise duties escalation on locally manufactured products.

The director general said: “In this context, Tinubu’s bold intervention through several Executive Orders has been welcomed with great enthusiasm.

“Particularly notable are the suspension of the five per cent excise tax on telecommunication services and the excise duties on items like tobacco, beer, wine/spirits, and the 10 per cent green tax by way of excise tax on Single Use Plastics.

“Additionally, the Import Tax Adjustment of two per cent and four per cent on imported motor vehicles of varying engine capacities has been put on hold.

“We are genuinely thrilled by the new Executive Orders; these amendments will undeniably enhance the operating environment and alleviate the high cost of doing business in Nigeria, especially in light of the recent fuel subsidy removal,” he said.

The director general however, said there was need for further action, expressing the necessity to reconsider the introduction of Value Added Tax of 7.5 per cent on Automated Gas Oil or diesel, and the outdated practice of minimum taxation.

According to him, these issues, if not addressed, threaten to undermine the gains made by the recent reforms.

“Our businesses continue to be weighed down by these additional tax burdens; it is high time we reviewed such practices that deter economic growth and create hurdles in the path of doing business, “ he said.

Oyerinde reaffirmed the association’s  commitment to collaborate closely with the current administration, advocating for further policy changes that could significantly enhance the Nigerian business environment and contribute to national economic prosperity.

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Increase in fuel price distorts economic activities — NECA

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The Nigeria Employers’ Consultative Association (NECA) has said that increase in pump price of fuel would further accelerate inflation, which would distort and destabilise economic activities.

Its Director General, Mr Adewale-Smatt Oyerinde, made the assertion in a statement on Wednesday in Lagos.

Oyerinde said also, that the increase would shrink private sector business capital and lower the real disposal income of the people.

‘’The inaugural address of the president on fuel subsidy has generated heated reaction, with fuel queues returning to the petrol station and the prices of goods and services increasing astronomically.

‘’The increase, if not well managed, could lead to an increase in the prices of goods and services with consequential effects on the purchasing power of the already impoverished Nigerian.

‘’No doubt therefore, the economy would contract in terms of growth; business activities will face serious backlash; and aggregate consumption will fall due to inflationary pressure, ‘’ he said.

The NECA boss said that, while it was desirable to remove the fuel subsidy, it was also important that the removal was systematically and strategically done.

According to him, this is in order not to further impoverish and worsen the already bad socio-economic indicators such as employment, poverty per capital income and many more.

Oyerinde said: ‘’It is worrisome to note that prices of other commodities have skyrocketed few hours after the president’s pronouncement of subsidy removal.

‘’Consequently, it is critically important that the new government approaches the removal of the subsidy with caution to circumvent further degeneration in the economy.

‘’We reiterate that in the spirit of frontally addressing corruption as stated in the president’s inaugural address, efforts should be stepped up to complete the rehabilitation of the refineries to complement the Dangote Refinery that just came on board recently.

‘’With the measure, it will be possible to attain scale in Premium Motor Spirit refining in the country so as to moderate domestic prices.‘’

NECA is the umbrella organisation of employers in the organised private sector of Nigeria.

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