Laws hindering business growth must be reviewed, NECA tells FG

The Nigeria Employers’ Consultative Association (NECA) has called for a review of laws that are hindering business growth in Nigeria.

Adewale Smatt-Oyerinde, director-general of NECA, spoke on Business Nigeria, TVC, on Tuesday, asking policymakers to reassess policies that could slow economic growth and job creation.

He said regulatory bodies must align their actions with the government’s economic recovery agenda, extending policy adjustments beyond the suspension of the free-on-board (FOB) levy.

“While it is the law, expediency should come first. Is it appropriate to implement certain policies now when businesses are reducing capacity utilisation, stock levels are increasing, and jobs are being lost? The law is not made to kill us; it is made to facilitate business growth,” he said.

“If it is now constituting a hindrance to the private sector and, by extension, the economy, then we must review it.

“If the 4 percent FOB can be suspended, if I see a feeling that the 50 per cent tariff can also be reduced, can also be suspended, I think there is no reason why the FRCM cannot also take a cue from this pattern that has been initiated for us to save the horse, for us to save the goose that is laying the golden egg.”

On February 11, the Nigeria Customs Service (NCS)  suspended the implementation of a 4 percent charge on the FOB value of imports.

Smatt-Oyerinde also warned stakeholders of myopic revenue focus, asking the government to prioritise policies that create business opportunities.

“This myopic view of revenue generation will do more damage to the bigger picture that the president is focused on,” he said.

He added that every additional financial burden on businesses translates to job losses, higher consumer prices, and reduced disposable income for Nigerians.