The Nigeria Employers’ Consultative Association has said the country’s industries are suffering as a result of declining input and a lack of foreign exchange.
At a recent media discussion in Lagos, Mr. Adewale Oyerinde, the Director-General of the Nigeria Employers’ Consultative Association, stated that for a firm to develop, it need essential inputs in the form of raw materials, funding, and a stable environment.
He continued by saying that in order for businesses to prosper, there must be a welcoming regulatory environment.
He said, “The issue of input has become a challenge to most businesses, especially in the manufacturing sector. We must import inputs and because importation requires forex, the unavailability of forex becomes a major challenge. And even when forex is available, you can’t get the quantum of forex that you need to import sufficiently from the official market.”
He bemoaned the fact that producers had to go to the illicit market before they could get foreign exchange, paying twice as much as they had planned for production costs.
He observed that there was confusion surrounding monetary and fiscal policy since many institutions, particularly the apex bank and the ministry of finance, were giving opposing monetary and fiscal directives when they were meant to function in unison.
Oyerinde added that investors would avoid an unstable economy and environment with a wide range of risks.
“An investor that wants to invest will look for an environment that is stable. Where you can sufficiently predict that if I commit this to this project or business, this will be the likely outcome but the moment those uncertainties are there, then you start second-guessing, if you should invest or not,” Oyerinde explained.
“Consistently summoning CEOs for investigative activities, we believe that is distractive.”
It causes a level of instability, and it also calls into question our touted separation of power. Because if the executive has the mandate to do certain things, the National Assembly shouldn’t dabble into it.”
He claimed it has been challenging for businesses in the country but the organised private sector hoped that things would change before businesses give in to the challenges confronting them.
