Due to the current economic crisis, the Nigeria Employers’ Consultative Association (NECA) has issued a compelling call to the Central Bank of Nigeria (CBN) to take decisive action in sustaining productive foreign exchange management. The association emphasizes the need for the CBN to intervene adequately in the market to address the prevailing challenges.
NECA, a prominent employers’ body, not only urges a substantial review of current policies but also recommends a strategic adjustment of the monetary authority’s approach to reducing money in circulation. The aim is to optimize this reduction to a level that would effectively stabilize the country’s economy.
Adewale-Smatt Oyerinde, Director-General of NECA, delivered these crucial messages during a press briefing in response to the latest inflation data. Oyerinde highlighted that food inflation, standing at 33.93 percent for the month, significantly contributed to the overall inflation surge.
Expressing concern over the economic trajectory, Oyerinde called on the government to proactively fulfill its promise of increased agricultural production, a commitment outlined in the 2024 budget. He further stressed the importance of adopting backward integration and resource-based industrialization to enhance domestic food production and raw materials.
NECA’s Director-General underscored the potential benefits of such measures, including a reduced dependence on imported food and raw materials, leading to the conservation of foreign exchange (FX). Oyerinde urged the government to address challenges in crisis-ridden areas, invest in sustainable agricultural practices, and upgrade infrastructure to boost overall food production.
Highlighting the potential consequences, Oyerinde warned that rising food costs could strain household budgets, heighten food insecurity, and contribute to a decline in the standard of living. NECA emphasizes the urgency of addressing these economic challenges to ensure a more stable and prosperous future.
As the nation grapples with economic uncertainties, NECA’s call for active intervention and strategic adjustments aims to contribute to a more resilient and stable economic landscape. The association remains vigilant in advocating measures that will safeguard the nation’s economic well-being.
Credit: The Guardian
