Re-evaluate Fuel Subsidy Removal For Socio-Economic Stability- NECA Urges Tinubu

Eko Hot Blog reports that the Nigeria Employers’ Consultative Association (NECA) has appealed to President Bola Tinubu to review and adjust the removal of fuel subsidies, highlighting subsidies as essential tools for socio-economic stability and growth.

NECA also urged the Federal Government to implement measures to enhance the business environment in the country.

This statement was issued on Tuesday by NECA’s Director-General, Adewale-Smatt Oyerinde, expressing concern over the country’s increasing unemployment rate.

He warned that the increasing rate may indicate an upcoming unemployment crisis in the country, especially given the current harsh economic conditions.

Oyerinde emphasized the need for the government to cease monetary rationing and ensure the optimal circulation of money to stabilize the economy.

He advocated for a review and moderation of fuel subsidy removal, highlighting the importance of subsidies for socio-economic stability and growth.

Additionally, Oyerinde suggested a re-evaluation of tax projections from the private sector, cautioning against high taxes that could potentially hamper business operations and economic growth.

Oyerinde said, “The government should end the monetary rationing which is going on at the moment and ensure that the optimum quantity of money needed to stabilize the economy is in circulation.

“It should review and moderate the fuel subsidy removal; subsidy is a tool for socio-economic stability and growth.

“Fuel subsidy, unemployment allowance, free medicare, social security allowance, old age allowance, child upkeep allowance are all subsidies; incidentally only fuel subsidy existed in Nigeria.

“Also, it should review its tax projections from the private sector, particularly in the present condition.

“The truth is that high taxes do not help anybody, not even the government; high taxes, as it is currently becoming, has the tendency to crowd out a swathe of businesses in the country.”

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