OPS: Yearning to be part of policy implementation

As Nigeria’s economy slides into recession, members of organised private sector (OPS) are urging government at all levels to involve them in articulation and implementation of the country’s economic policies. TAIWO HASSAN reports

With the Federal Government’s position, including that of the Central Bank of Nigeria (CBN) and others that the current recession is expected to be exited in Q1’21, private sector operators, including the Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI) and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), believe they deserve to be part of solving the problems as key players. In fact, the country’s current economic challenges are numerous, ranging from the impact of COVID-19, weak oil prices and production, persisting forex pressures, deterioration in purchasing power, and disruptive effect of #EndSARS protests. They have all caused severe damage to recovery prospects even as the government believes in exiting the recession. No doubt, it is about time for collaborations among all segments of stakeholders, including the private sector, to brainstorm on getting the country’s ailing economy out of the precarious situation in earnest. The National Bureau of Statistics had announced that the economy had gone into recession recently with GDP recording a negative growth of -3.62 per cent in the third quarter of 2020.

NACCIMA

At the 2020 4th quarter meeting of NACCIMA Council in Port-Harcourt, Rivers State recently, it called on government at all levels to fully involve the OPSN and private sector operators in the articulation and subsequent implementation of policies. The council is of the firm view that as the country searches for a way out of economic recession, government must work closely with the private sector, which will have a key role to play, if the goal of early recovery will be met in the first quarter of 2021 as being predicted by the Minister of Finance, the CBN Governor and others in government circles. The council meeting had in attendance members of chambers of commerce from across the country and was presided over by its National President, Hajiya Saratu Iya Aliyu. At the meeting, the council drew attention to the fact that the Q3 contraction of the economy was fore told in view of the COVID-19 pandemic, the drop in crude oil prices, and the civil unrest that ensured. All of these issues require robust response in close cooperation with the OPSN. The council also drew attention to the need for proper synergy of monetary and fiscal policies that will engender inclusive growth and development in some strategic sectors such as agriculture, manufacturing and mining. Most importantly, the OPSN must be taken on board in the articulation of policies, policy implementation, and the process of monitoring and evaluation. The council also reaffirmed its position that diversification must be given more serious attention and the Economic Sustainability Plan should be faithfully implemented in a way to ensure quick impact to tackle the issues of unemployment and infrastructural development.

LCCI

In his own reaction, the Director-General of the LCCI, Dr. Muda Yusuf, explained that the recession was an eye opener for government at all levels and Nigerians that there is need to engage in constructive talks on finding solution to the precarious situation at hand in the moment. Yusuf emphasised that the worst was over for Nigeria’s economy as the contraction in the third quarter was much less than what was experienced in the Q2.
The LCCI DG explained that the news of the country’s economy residing into recession did not come as a surprise to the LCCI and other members of the OPS. Yusuf explained that the recession won’t take long time for sure, but noted that the EndSARS crisis may push the recession into the fourth quarter following the protests and the destruction that followed which was a major setback for the country’s plans towards economic recovery prospects. The LCCI DG said: “The news of the recession did not come as a surprise to us. The economic contraction was -3.62 per cent in the third quarter as against -6.1 per cent in second quarter. With these numbers, we can possibly say that the worst is over as the contraction in the third quarter was much less than what we experienced in the second quarter. “Regrettably, the EndSARS crisis may perpetuate the recession into the fourth quarter. The protests and the destruction that followed was a major setback for our economic recovery prospects. “From an economic perspective, 2020 has been a very bad year the worst in recent history. We are faced with the double jeopardy of a stumbling economy and spiraling inflation. The October inflation numbers of 14.23 per cent was the highest in 10 months. In economic parlance, this condition is characterised as stagflation. The effects of these developments are evident in business and in households. Speaking on facilitating quick economic recovery, the economic analyst said: “We need to restore normalcy to the foreign exchange market by broadening the scope of market expression in the allocation mechanism. “The ports system, especially the key institutions in the international trade processes need to be more investment friendly. Trade is critical to recovery. “We should show greater commitment to the fixing of the structural issues to reduce production and operating costs for investors in the economy. “Hopefully, the economy will resume to the path of growth in the first or second quarter of 2021, barring any new disruptions to the economy,” he added.

MAN

Acting Director-General of MAN, Ambrose Oruche, pointed out that exiting recession would be collective between government and private sector operators. Oruche noted that MAN and others could provide suggestions to government on the business models to be adopted that will galvanise the country’s economy during this period of recession. He urged government to ensure that patronage of made-in-Nigeria goods form the fulcrum of exiting recession. The acting MAN DG bemoaned that Nigerians must moderate their insatiable tastes for consumption of foreign goods to stabilize the nation’s economy during recession. Oruche said the most lasting and sustainable measure to grow the nation’s economy fast was by producing what peope eat in the country. He recalled that in the 70s, the country invested in agriculture, production of some basic items to cater for its needs and export of locally produced goods to strengthen its currency and the economy. According to him, “Nigerians to return to production of what they consumed by patronizing made-in-Nigeria goods. Nigerians should go back to moderation of their taste and consumption of foreign goods. “If we do so, it will help the government to stabilize the economy,” he said.

Last line

No doubt, the nation’s economy has been affected by COVID-19, the #ENDSARS saga and others, but the OPS is insisting there is the need to accelerate growth by reducing inflation in the economy.