NECA Seeks Concerted Action On Economy

The Nigeria Employers’ Consultative Association (NECA) has called for concerted efforts by stakeholders to pull the economy away from the downward slide.

The Director-General of NECA, Dr Timothy Olawale, while responding to a damning economic report by the National Bureau of Statistics (NBS) on Monday, said: “The economic data released by the National Bureau of Statistics (NBS) is a call to urgent action. The economic contraction, leaving GDP growth rate at -6.10% is not only alarming but also worrisome.”

He said while it was expected that the Covid-19 pandemic would create economic shock and disrupt business activities, recent releases have shown that the level of shock and disruption was highly underestimated.

While shedding light on the realities and consequences of the economic slide, the NECA boss said, “It is highly worrisome that the economy is facing unusual times, similar to the pre-2016 recession. A period of increasing inflation, unprecedented high youth unemployment and underemployment rate, the dwindling value of the naira occasioned by limited access to foreign exchange and a negative growth rate.”

Olawale urged the government to “take a bold step in stopping the slide by refocusing monetary and fiscal policies to support economic sectors that have potentials for large scale production and employment as a means to kick-start the economy.

Operators Decry 400% Rise In Freight Rate

Stakeholders in the maritime sector have expressed concern over the increased cost of freight by 400 percent due to the drop in the nation’s Gross Domestic Product (GDP).

The Stakeholders who expressed their worries in an interactive session in Lagos on Tuesday.

The Chairman Port Consultative Council (PCC), Otunba Kunle Folarin, said before now the sector’s growth rate had been affected by the lockdown occasioned by the CONVID-19 pandemic.

“The summary of all these is that the economy is gradually going into recession. There is no doubt about that and there is no intervention by government to shore up the dollar.”

He warned that if the dollar rate is let loose, it could go beyond N500 to the dollar.

On his part the President of National Association of Stevedoring Companies (NASC), Mr. Bolaji Sunmola agreed that the economy is heading towards a recession.

“From indices available, the economy is heading towards a recession, we have a situation whereby the capacity to produce is not there, the capacity to buy is not there.”

The Executive Secretary of the Nigerian Shippers Council, Mr. Hassan Bello said the fall in the GDP is expected following the outbreak of the Coronavirus pandemic which affected virtually other economies of the world.