How FG’s revenue push is hurting businesses- NECA

The Nigeria Employers’ Consultative Association (NECA) and the International Labour Organization (ILO) on Tuesday raised concerns over the increasing pressure on businesses caused by the Federal Government’s aggressive revenue generation drive through Ministries, Departments and Agencies (MDAs).

The government has actively tasked its revenue-generating agencies to increase their revenue collections to meet its revenue targets.

Adewale Oyerinde, director-general, NECA, while addressing a press conference in Abuja decried that the business environment has become more challenging because MDAs are more focused on generating revenue than creating an enabling environment for businesses to thrive.

According to Oyerinde, the MDAs have entered into an unhealthy competition to outdo one another in revenue generation, a practice he said is stifling private enterprises.

“For every revenue MDAs generate, we must ask: How many jobs are being lost? How many businesses have been forced to downsize or shut down entirely just to meet these revenue targets? The race to generate the highest revenue is killing sustainable enterprises,” he lamented.

The DG further criticized the levies imposed on businesses, questioning their long-term impact on employment and economic sustainability.

He informed that the upcoming Labour Adjudication and Arbitration Forum, scheduled for February 13, will address critical issues such as business survival, the promotion of labour laws, and the protection of employers’ rights.

“We are expecting the Director-General of the International Labour Organization (ILO), Gilbert Houngbo, at the forum. One of the key discussions will be the need to facilitate the Nigeria Labour Law, which has been overlooked for too long. We will also advocate for stronger protections for both workers and employers,” Oyerinde added.

Similarly, Venessa Phala, country director of the ILO, highlighted the importance of addressing social issues affecting businesses and workers in Nigeria. She noted that Houngbo’s visit would promote social justice and foster dialogue between the Nigerian government, UN agencies, and key industry players.

“What the ILO DG will champion is a global coalition to address inequalities. This forum will bring together UN agencies, the Nigerian government, and private sector leaders to balance contributions and find solutions to these challenges,” Phala stated.

The forum is expected to provide a platform for critical discussions on labour rights, economic policies, and the need to create a more business-friendly environment in Nigeria.