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Tag: NECA

  • NECA: budget passage delay is dangerous

    NECA: budget passage delay is dangerous

    The Nigeria Employers’ Consultative Association (NECA) has expressed displeasure over the National Assembly’s delay in the passing  the 2018 budget.

    Its President, Mr. Larry Ettah, said at the end of its Governing Council meeting in Lagos, that the development could drag the nation into a state of inertaia.

    “It appears to have become a tradition in this democratic dispensation for the budget to be unduly delayed thereby plunging the economy into a state of inertia, particularly in the first quarter of the year.

    “In December 2016, the President presented the 2017 Appropriation Bill to the National Assembly. However, the National Assembly did not pass the bill until May 11, 2017, almost six months after it was presented. We recollect that President Muhammadu Buhari presented the 2018 budget to our Legislators in November 2017,” he said.

    He implored the two arms of government to mutually agree on a time frame that would ensure that the budget for the following year was passed into law before the end of every current fiscal year.

    Reacting to the Land Use Charge 2018, Ettah accused the Lagos State government of being insensitive and inhuman to corporations and residents.

    According to him, the recent amendment to the Land Use Charge Law was a classical case of insensitivity, alienation and gross disregard of the wellbeing of corporate and individual residents.

    “In reality, the new law will expect property owners in Lagos State to pay at the very minimum, a monstrous, appalling and callous increase of over 200 per cent and in some instances over 500 per cent in Land Use Charge. It is not as if the income of a property owner has gone up significantly to justify this outrageous law,” Ettah said.

    Moreso, he argued that the real estate sector had continued to wallow in deep recession with high vacancy rates.

    “How on earth would any decent authority increase taxes overnight by over 200 to 500 per cent when in reality government should be doing more to stimulate the sector to come out of recession? To compound matters, there is a repugnant and odious penalty payment ranging between 125-200 per cent, if payment is not made between April and August,” he said.

    He said the Organised Private Sector (OPS) found the law intolerable and brutish, adding that the OPS would do everything legal and legitimate, including social resistance to challenge the unfair and unjustifiable law.

    “We put Governor Akinwunmi Ambode on notice that this law in its current form is not acceptable and the OPS will fight this law by social resistance and any other legitimate means at its disposal to get the government to ameliorate the harsh impact of the abhorrent law on residents.

    ”We believe in the context of a democracy that it is important that truth is spoken to power. We hope the government will not be obdurate and see reason as to why this law is unfair,” he said.

    The NECA boss, who commended the government for the constitution and re-constitution of some boards of parastatals and agencies, is, however, worried over the lateness and non-reconstitution of some other boards, which, he said, portends danger for good governance and a negative image for the country.

  • NECA rejects Federal Competition and Consumer Protection Bill 2016

    NECA rejects Federal Competition and Consumer Protection Bill 2016

    The Nigeria Employers’ Consultative Association (NECA) has rejected the Federal Competition and Consumer Protection Bill 2016, sent to President Muhammadu Buhari  by the National Assembly. NECA urged the President to withhold his assent.

    The Bill seeks development and promotion of fair, efficient and competitive markets in Nigeria. It will also facilitate access to safe products by citizens and protect consumers’ rights.

    NECA accused the National Assembly of surreptitiously inserting 0.5 per cent tax on companies to fund the establishment of a planned Commission/Agency, which will undertake responsibilities under the law.

    NECA also contended that the  0.5 per cent tax on private companies was neither in the draft nor discussed at the public hearing of the bill. It described the development as fraudulent.

    In a statement by its Director-General, Mr. Segun Oshinowo, the body said: “While the private sector welcomed and, in fact, actively supported the introduction of a dispensation where an institution will exist to promote fair, efficient and competitive markets in the Nigerian economy, at no time, during the public hearing on the Bill, did we discuss the imposition of 0.5 per cent profit after tax on all companies operating in Nigeria, as a source of funding the Commission. This provision was not contained in the draft bill that was exposed to the public.

    “So, what could have been the source of this obnoxious provision that seeks to further drain life out of a struggling and comatose private sector that is still laboring under the unbearable weight of multiple and overlapping taxes and levies? This surreptitious insertion is a fraudulent act, which we seriously frown at.”

  • OPS decries effects of bad Apapa roads on businesses

    OPS decries effects of bad Apapa roads on businesses

    The Organised Private Sector ( OPS )  has urged the Federal Government to find a lasting solution to the problem of bad access roads to Apapa ports in Lagos which is affecting the cost of businesses.

    The OPS spoke on Wednesday at a conference in Lagos on the Petroleum Industry Bill and the impact of bad roads in Apapa on businesses.

    The OPS comprises Nigeria Employers’ Consultative Association ( NECA ), Manufacturers Association of Nigeria ( MAN ) and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture ( NACCIMA ).

    The others are the National Association of Small and Medium Scale Enterprises ( NASME ) and the National Association of Small Scale Industries ( NASSI ).

    Mr Segun Oshinowo, Director-General of NECA, said many companies would close shop if Apapa roads remained bad.

    “The OPS is concerned about access roads to the Apapa ports. It is affecting overhead costs of businesses of  our members.

    “Preventable accidents as a result of the bad roads lead to huge loss of revenues; loss of jobs and closure of businesses. This will further worsen trade facilitation,’’ Oshinowo said.

    He advised the government to create alternative roads, put measures in place to free traffic and proffer lasting solutions to gridlocks in Apapa.

    On the Petroleum Industry Bill, Mr Segun Ajayi-Kadiri, Director-General of MAN, advocated creation of two regulatory bodies for the petroleum industry as against one body recommended in the Petroleum Industry Governance Bill ( PIGB ) before the National Assembly.

    Ajayi-Kadiri said that there was the need to avoid “costly mistakes’’ that could work against reforming the sector.

    Read also: Fed Govt to shut depots over Apapa gridlock

    According to him, one of such mistakes is a provision in the PIGB for a single regulator for the industry.

    He said that two regulatory bodies – one for the upstream and another for the downstream – would serve the sector better.

    “A cursory look at some of the provisions of the PIGB revealed the likely emergence of the Petroleum Regulatory Commission (PRC) – an omnibus commission that will be empowered to regulate the entire petroleum sector.

    “We do not share the view of the Assembly on creation of a regulator for a sector that is not homogenous in its activities and deliverables.

    “The idea of a single regulator for the whole sector runs contrary to industry standards which by default already provides for an upstream and downstream regulator, ‘’ Ajayi-Kadiri said.

    The director-general of MAN said that the responsibilities of the proposed commission was too wide as it cut across various value chains in a key sector of the economy.

    He commended the National Assembly for taking steps to reform the petroleum industry through the PIGB, and called for accelerated actions.

    NAN

  • NECA sues Reps to court for frequent summon of CEOs

    NECA sues Reps to court for frequent summon of CEOs

    Employers are not happy that company chiefs are being summoned frequently by lawmakers.

    Nigeria Employers’ Consultative Association (NECA) has sued the House of Representatives to court over the matter.

    According to the group, the actions of the lawmakers have been undermining business sustainability and growth.

    NECA is specifically praying the court to interpret Sections 88 and 89 of the Constitution, which the lawmakers rely on to summon the CEOs in the name of oversight functions.

    At a briefing in Lagos, its Director-General, Mr. Olusegun Oshinowo, accused members of the House, especially its committees, of disregarding court processes.

    He contended that the continued disregard of court processes and persistent summons of chief executives of organised businesses to National Assembly was a disregard of the rule of law, and legislative rascality.

    Oshinowo singled out the House of Representatives Committees on Labour, Employment & Productivity; Steel; Telecommunications; Public Safety and National Security; Ad-Hoc  Committee  on  the   Abuse  of  Pioneer  Status   by  Companies and Ad-Hoc Committee Investigating Operational Activities of Telecommunications Equipment and Service Companies/Vendors in Nigeria, as the most guilty.

    He lamented that petitions to the Speaker of the House of Representatives, Yakubu Dogara, over the activities of the committees had not been addressed till date, noting that to worsen the situation, members of the committees, instead of attending to CEOs directly, chose always to act through consultants.

    He said:  “All efforts at exploring the avenue of dialogue, advocacy and lobbying as evidenced through our several correspondences to the House and submissions at hearings and visits to the National Assembly seem to have been ineffective in protecting the economic rights and interest of businesses in this environment.”

    Oshinowo said the legislators only listen to themselves and have become law unto themselves. “Therefore, we are left with no option but to seek judicial solace to protect enterprise rights and provide some reliefs to businesses by staving off  the negative attitude of the legislators.

    “Despite on-going court processes, organised businesses are still being inundated with torrents of summons/invitations and requests from the House of Representatives. Recently, the afore-mentioned committees have been very active in their disregard of court processes.

    “In one instance, a company is currently being hounded with invitations from about seven committees of the House of Representatives on issues they could ordinarily have sorted out with regulatory institutions that supervise activities in that sector of the economy,” he said.

    Oshinowo said NECA expects speaker of the House of Representatives, who is a lawyer himself, and by extension, all the committees and adhoc committees within the House of Representatives and the Clerk of the National Assembly, among others, who are all restrained by the sub-judice status of this case to exercise caution until the determination of the matter.

    Oshinowo said: “We are even taken aback by the House Committees’ non respect for its own Standing Order IX Rule 5 on rules of debate, which provides as follows: “Reference shall not be made to any matter on which a judicial decision is pending, in such a way as might in the speaker’s opinion prejudice the interest of parties thereto”

  • NECA decries incessant summons by lawmakers

    NECA decries incessant summons by lawmakers

    The Nigerian Employers’ Consultative Association (NECA) is displeased with the summons of chief executives of businesses by the National Assembly.

    Specifically, it criticised a recent letter and advertorial by the House of Representatives, which requested information on product contents from some of its member-companies, and  invited the companies’ heads to appear before the Investigative Committee headed by the House Leader, Mr. Femi Gbajabiamila.

    NECA Director-General Mr. Olusegun Oshinowo noted: “While we have no issues against companies providing basic information to the legislators to help them in their investigative activities, we do not agree with the frequent summons by the various committees to appear before them. This is a fundamental matter in an on-going court case SC/734/2017 against the Speaker and the House, which is presently at the Supreme court.

    “The House is very well aware of this position.

    ‘’Respondents in the case include Speaker of the House of Representatives (and by extension all the Committees and Ad-Hoc Committees within the House of Representatives) and the Clerk of the National Assembly, among others. In effect, they are all restrained by the sub-judice status of this case.”

    Oshinowo further lamented the increased perception of Nigeria as an unfriendly place to do business due to the extra-regulatory and over-reaching activities of lawmakers.

    He advised that the legislative arm of the government should cooperate with the executive to realise the latter’s objective on the Ease of Doing Business initiative, under the auspices of the Presidential Enabling Business Environment Council (PEBEC).

    He said NECA believed in dialogue, adding that it was the best way to move forward.

  • NECA: economy still prone to recession

    NECA: economy still prone to recession

    •Fault NBS 2.19% growth

    The Nigerian Employers Consultative Association (NECA) has warned that the economy can relapse into recession unless urgent policy decisions are taken.

    It faulted the report by the National Bureau of Statistics (NBS) that Nigeria had exited recession, saying the economy was still in the woods.

    Speaking in Lagos at a briefing, its President, Larry Ettah, said major policy responses must be considered to ensure sustainable growth, as well as effective implementation of the Economic Recovery and Growth Plan (ERGP).

    Dissecting the report, Ettah observed that while it was positive that headline year-on-year inflation had moderated from 18.72 per cent to 16.05 per cent, largely due to base effects (high base occasioned by shock to energy prices in 2016), several components of inflation still remained high.

    He said other components that remained high include clothing and footwear at 15.8 per cent, education 15 per cent, imported foods 14.1 per cent, furnishings and household equipment maintenance 12.3 per cent, transport 11.7 per cent and health 10.3 per cent.

    He noted that the review of the NBS Gross Domestic Product (GDP) data showed that the marginal growth recorded in the second quarter (Q2) 2017 was weak and fragile, stressing that additional measures were required to ensure sustainable economic growth to the extent that the economy does not relapse into recession.

    “We recommend strong implementation of the ERGP to boost local and foreign investors’ confidence in the Nigerian economy and generate additional investments, which appear critical to building a sustainable recovery.

    “We note that against our population growth rate of 3.2 per cent, any GDP growth lower that two per cent makes no significant impact on poverty, unemployment and inequality and is insufficient to ensure business growth and profitability.

    “We urge economic planners to adopt measures to attain the growth targets stated in the ERGP. Already, we fear that the 2.19 per cent growth target in ERGP for 2017 appears unattainable,” Ettah said.

    He pointed out that the NBS report for Q2 confirmed the dire situation in most economic sectors including manufacturing, trade, telecommunications, hospitality, construction, real estate, transport and professional services. Ettah added that it also showed the poor state of the country’s social sector, as shown by the recession in education and health sectors. He stressed that it was clear that policy responses were yet to reverse these negative trends.

    “We are of the opinion that government needs to adopt specific, targeted and effective policies to attract and promote private capital investments in the Nigerian economy, especially infrastructure and industry.

    “So far, it does not appear as if the rhetoric in ERGP to make markets work and leverage private capital as the engine of growth has been matched by appropriate policy responses,” he said.

  • NECA unveils entrepreneurship scheme 

    The  Nigeria Employers’ Consultative Association (NECA) and Imagine Business Services have launched NECAPreneur to address youth unemployment.

    Speaking in Lagos, NECAs Director-General, Mr. Olusegun Oshinowo said: “The initiative in is tandem with NECA’s mandate to influence economic and socio-labour policies to create an army of gainfully employed youths who in turn would be employers of labour and ultimately add to national development. The target is getting youths to be wealth creators rather than job seekers.”

    Oshinowo deplored a situation where the youths are roaming the streets and available as ready tools for social ills.

    He said: “The NECAPreneur is, particularly, designed for youths and undergraduates in Nigeria and the whole idea is to create an environment where we can get our undergraduates to think entrepreneurship before they leave the university, while those who have left and are unable to get a job would be motivated to embrace entrepreneurship as well.”

    Oshinowo said Nigeria has a population estimated over 185 million, above 50 per cent of which is below 30 years, and over 13 per cent of this are unemployed.

    NECAPreneur, according to him, seeks to aggressively develop and make entrepreneurs of Nigerian youths by creating entrepreneurial consciousness among them.

    “As representative of employers, we have the statistics and the fact is that the jobs are simply not there. That is the truth.

    “Demand for jobs has by far outstripped the supply for jobs and this is going to continue for a while and we would want to enjoin our youths to take their destinies in their hands by embracing entrepreneurship.

    “The scheme is activated in tertiary institutions across Nigeria and also opened to the teeming youth that are already out of school. It will not only equip them to birth and successfully run their own businesses, but also lead them into avenues for start-up capital, mentoring, internship opportunities through NECA’s network and eventual certification of successful participants,” he said.

    The Entrepreneurship e-learning programme comes in three stages – Basic, Intermediate and Advance.

    It is delivered through video tutorial and texts which is structured into engaging modules. The curriculum is tested, practical and culturally relevant with the support of the International Labour Organisation (ILO).

  • High unemployment rate is disturbing, says NECA

    High unemployment rate is disturbing, says NECA

    The Nigeria Employers’ Consultative Association (NECA) has said the latest data by the National Bureau of Statistics(NBS), which revealed that 12 million Nigerians are unemployed, is worrisome, adding that the problem goes beyond being an economic issue.

    At the Annual General Meeting and the 60th anniversary of NECA, its President, Mr Larry Ettah, said the high rate of unemployment has become a social and security issue, which could undermine the stability of the country.

    He said: “Given the scope of this problem, we certainly have to go outside the usual government rhetoric on what we want to do or what we are doing and the unproductive administrative backed up with results.

    “The government must ensure that we embrace a political structure and culture that will enthrone multiple centres of our GDP. We also commend good governance, massive infrastructural development, employment –focused/centred policies and constructive cross sectorial local content development policy and programmes a s helpful agenda that would naturally provide needed millions of jobs in the course of execution.”

    Ettah said the fixed exchange rate dispensation with its attendant multiple rate does not augur well for right pricing and effective means of resources.

    “Though it seems lately to have provided some reprieve for the value of the local currency, it is very doubtful if this is sustainable in the long term,” he said.

    He said evidence from other economies are clear and compelling to the effect that floating exchange rate systems enable economies respond best to declines in the value of the their export and provide a natural adjustment mechanism to preserve forex reserves and change incentives and behavior of economic actors.

    “ This is the reason we are convinced that the way to go is to allow market forces to determine the value of the naira; and consequently abolishing the multiple rates,” he said.

    Ettah said this dispensation of high interest rate was negative to the growth and development.

    He said the association’s concern is not so much the justification for the high cost of fund, but the need for managers of the economy to appreciate that high interest rate is antithetical to growth and therefore the need for concerted and co-ordinated efforts by the government backed by sound fiscal and monetary policies to bring it down to single digit.

    He said beyond this, the government has crowded out the private sector in terms of access to credit , as it seeks to cover budgetary deficit, adding that the current has engendered a rent seeking economy that has encouraged entrepreneurship and wealth creation, with grave implication for jobs creation.

    Minister of Budget and National Planning, Senator Udoma Udo Udoma, who spoke on the  theme ”The Economic Recovery and Growth Plan’’, said the ERGP is the blueprint the administration intends to use to fix the broken economy.

    He said the  successful implementation of the ERGP will revitalise the economy and put it back on the path of sustained, inclusive, and diversified growth and development.

    He said the ERGP, which is a product of an extensive consultative process with all stakeholders across the country, builds on the Strategic Implementation Plan (SIP) and sets out government policy direction for the economy over the medium term.

    According to him, the plan is intended, not just to get us out of recession, but to put us on a strong, diversified, inclusive, and sustained growth path.

    “In developing the ERGP we held consultations with the State Governors and Commissioners of Planning and Economic Development of the States.

    ‘’We also held consultations with the leadership and membership of the National Assembly. Amongst others we consulted were our development partners, such as the UNDP, the World Bank and the IMF. We also consulted leading Nigerian economists and development experts. And, most importantly, we consulted the private sector, as this is a plan that requires extensive collaboration with the private sector for its effective implementation,” Udoma added.

  • ITF, NECA train 3,000 youths in technical skills

    Three thousand youths are being trained under the Technical Skills Development Project (TSDP) of the Industrial Training Fund (ITF) and the Nigerian Employers’ Consultative Association (NECA), ITF Director-General Joseph Ari has said.

    The training is holding in 18 industrial centres nationwide.

    Ari said the TSDP was one of the initiatives by both organisations create jobs.

    “Its primary objective is to reduce unemployment, promote sustainable wealth creation and give the youths entrepreneurial and attitudinal proficiency through technical skills acquisition,” Ari stated.

    He said the participants would be trained in 18 trades and crafts, including electrical/electronic maintenance, mechanical machinery and maintenance.

    According to him, they would also be trained in welding, fabrication, plumbing/pipe fittings maintenance, beverage bottle operation and information and communications technology.

    Ari listed others as building construction, carpentry and joinery, agriculture and agro-allied, animal husbandry, aqua culture, breeding and hatchery, livestock and aqua culture feeds, as well as fashion designing.

    ITF and NECA, he said, expected the participating organisations to equip the trainees with competitive skills to enable them get jobs after the programme.

  • ITF, NECA train 3,000 youths on technical skills

    THREE thousand youths are being trained under the Technical Skills Development Project (TSDP) of the Industrial Training Fund (ITF) and the Nigerian Employers’ Consultative Association (NECA), ITF Director-General Joseph Ari has said.

    The training is holding in 18 industrial centres nationwide.

    Ari said the TSDP was one of the initiatives by both organisations create jobs.

    “Its primary objective is to reduce unemployment, promote sustainable wealth creation and give the youths entrepreneurial and attitudinal proficiency through technical skills acquisition,” Ari stated.

    He said the participants would be trained in 18 trades and crafts, including electrical/electronic maintenance, mechanical machinery and maintenance.

    According to him, they would also be trained in welding, fabrication, plumbing/pipe fittings maintenance, beverage bottle operation and information and communications technology.

    Ari listed others as building construction, carpentry and joinery, agriculture and agro-allied, animal husbandry, aqua culture, breeding and hatchery, livestock and aqua culture feeds, as well as fashion designing.

    ITF and NECA, he said, expected the participating organisations to equip the trainees with competitive skills to enable them get jobs after the programme.